News: Iluka makes $284 mln bid for Sierra Rutile

MELBOURNE, Aug 1 (Reuters) - Australia's Iluka Resources (ILU) has made a 215 million pound ($284 million) all cash takeover offer for rival mineral sands producer Sierra Rutile , looking to take advantage of a market slump to boost its long-term resources.

Iluka offered 36 pence a share in cash, which was 1.5 pence below Sierra Rutile's last trade before the approach was revealed last Friday, and said it would also absorb about $60 million in debt. Sierra Rutile stock was trading around 22 pence less than a month ago, but has since jumped to two-year highs.

"It is a logical combination of complementary businesses at this point in the mineral sands cycle," Iluka Chairman Greg Martin said in a statement.

Sierra Rutile mainly produces rutile from one of the world's largest deposits in Sierra Leone. The deal will double Iluka's resource base of the premium mineral, which is used to make white pigment and titanium metal.

"Due diligence has been conducted on the SRL operation and Iluka believes the offer represents an attractive risk/return profile for shareholders across a range of scenarios," Iluka Managing Director David Robb said in a statement.

The takeover comes following cashed up Iluka's thwarted attempts between 2013 and 2015 to take over another mineral sands miner, Kenmare Resources Plc .

Iluka shares rose 1.7 percent on Monday, outpacing a 0.4 percent rise in the broader market (xjo). ($1 = 0.7565 pounds)