Mozambican coal leads Rio Tinto to raise offer for Australia’s Riversdale Mining

10 March 2011

Sydney, Australia, 10 March – the chief executive of Riversdale Mining approved the improved conditions of the takeover bid launched on the company by Anglo-Australian group Rio Tinto telling investors that there were no competing offers.

The Rio Tinto group announced it was upping its offer to 16.5 Australian dollars per share from 16 dollars previously, in a takeover bid that requires the company to purchase over 50 percent of the company, which has coal concessions in Mozambique estimated to have billions of tons in reserves.

Speaking to newspaper, The Australian, Riversdale Mining’s CEO, Steve Mallyon, said he had recommended that shareholders accept the offer from Rio Tinto, “in the lack of a higher bid.”

Rio Tinto’s bid requires the support of one of its main shareholders, Indian group Tata Steel and Brazil’s Companhia Siderúrgica Nacional (CSN), in order to reach the announced target of more than 50 percent of the group’s capital.

Since the bid was announced on 24 December, 2010, both Tata Steel and CSN have been increasing their stakes in Riversdale Mining, and now have a joint share of 47 percent, as compared to 17 percent owned by Rio Tinto. (macauhub)