Atlas Iron Limited (“Atlas”) (ASX: AGO) refers to its announcement dated 18 June 2018 noting the lodgement of the bidder’s statement by Redstone Corporation Pty Ltd, a wholly-owned subsidiary of Hancock Prospecting Pty Ltd, in relation to an off-market takeover bid for 100% of the shares in Atlas for cash consideration of $0.042 per Atlas share (“Hancock Offer”).
The Atlas Board has assessed the Hancock Offer, and has determined that it could be expected to lead to a superior proposal when compared to the Mineral Resources Limited (“MinRes”) scheme proposal announced by Atlas on 9 April 2018.
Atlas has issued a notice to MinRes under the matching rights regime in the MinRes Scheme Implementation Deed, which gives MinRes three business days to make a counter proposal to the Hancock Offer, expiring 21 June 2018.
Until MinRes has had an opportunity to make a counter proposal to the Hancock Offer, the Atlas Directors maintain their existing recommendation in favour of the MinRes scheme proposal.
The Atlas Board advises shareholders to TAKE NO ACTION in relation to the Hancock Offer until they receive further advice from the Atlas Board.
AGO Price at posting:
4.4¢ Sentiment: Buy Disclosure: Not Held
