Flinders Mines welcomes Magnitogorsk $554m offer
From: AAP November 25, 2011 1:05PM
PROSPECTIVE Pilbara iron ore miner Flinders Mines today welcomed a $554 million takeover bid from a Russian steel producer.
Magnitogorsk Iron and Steel works offered to buy all issued shares in Flinders Mines for 30 cents each, almost double the 16.5c level that Flinders Mines shares closed at yesterday.
Flinders Mines has more than 1.8 billion shares on issue.
News of the takeover offer sent the shares soaring today - Flinders was 12c (73 per cent) at 28.5c by early afternoon.
The Flinders Mines board has unanimously recommended the offer to shareholders.
"The proposal from MMK offers Flinders shareholders a very significant premium and value certainty in an uncertain market," chairman Robert Kennedy said in a statement.
An independent expert will be appointed by Flinders Mines to determine whether the MMK bid is in the best interests of shareholders.
If the bid is approved, the transaction could be finalised by next March.
An early-2015 production target has been forecast for Flinders Mines's flagship asset, the Pilbara Iron Ore Project in the West Pilbara region of Western Australia.
A secondary project, Canegrass, is located in Western Australia's mid-west.
press re takeover bid
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