WA paper: FMG thwarts MIN bid

Without each of  us, really it is unlikely to have eventuated. Well done all

Nice quote about us in article:

many of Atlas Iron’s legion of small shareholders being bitterly opposed to the MinRes offer.

FMG thwarts MinRes bid for Atlas with surprise shares buy-up
Stuart McKinnonThe West Australian
Thursday, 7 June 2018 11:55AM

Fortescue Metals Group has emerged as a surprise, potential rival bidder for Atlas Iron after revealing it had amassed a 19.9 per cent stake in the company.

The Andrew Forrest-controlled company announced this morning it would not support the proposed all-scrip $280 million takeover of Atlas by Chris Ellison’s Mineral Resources on its current terms but would reserve the right to do so.

Fortescue said it had agreed to acquire 15 per cent Atlas Iron at 4¢ a share, well above the 3.2¢-a-share MinRes is offering in scrip, based on its one-for-571 share offer.


“In addition, Fortescue has an economic interest through a cash settled swap relating to notional shares equivalent to approximately 4.9 per cent of Atlas Iron’s ordinary shares,” the company said.

“As a result, Fortescue has an aggregate physical and economic interest in 19.9 per cent of Atlas Iron’s ordinary shares.”

The stake represents the maximum a company can hold in an entity without announcing a takeover bid.

However, the holding effectively represents a blocking stake, with many of Atlas Iron’s legion of small shareholders being bitterly opposed to the MinRes offer.

Should Fortescue announce a rival offer for Atlas, it will pit two of Perth richest and hard-headed mining entrepreneurs against one another in Mr Forrest and Mr Ellison.

At stake is one billion tonnes of iron ore resources across several landholdings in the Pilbara, which are also prospective for lithium, as well as a coveted 13 million tonne-a-year port capacity at Utah Point.

Atlas shares were up 0.2¢, or 6.25 per cent, to 3.4¢ at 10am.