Rio Tinto launches takeover bid for Riversdale Mining

12 January 2011

London, United Kingdom, 12 Jan – Anglo-Australian mining group Rio Tinto said Tuesday in London it was launching a takeover bid for Australian group Riversdale Mining offering 16 Australian dollars per share.

The offer is valid until 7 am Sydney time on 18 February and, if it is accepted by the Riversdale Mining shareholders will allow Rio Tinto to control coal blocks that the Australian group has in Mozambique.

In a letter to shareholders, the board of directors of Riversdale Mining said that the Rio Tinto bid offered a substantial premium on the value of shares ahead of the announcement, on 6 December, of the Anglo-Australian mining group’s first proposal, and advised the offer be accepted.

Riversdale Mining, which is headquartered in Sydney, is 22 percent-owned by India’s Tata Steel, which owns a 35 percent-stake in the Benga coal block in Tete province, Mozambique.

Riversdale also has a concession on the Zambeze coal block next to Benga, and controls the Zululand anthracite company in south Africa. (macauhub)