ArcelorMittal-Nunavut stake in Baffinland reaches 90 per cent
08 Feb 2011
The acquisition saga for Canada's junior miner Baffinland Iron Mines Corporation by global steel giant ArcelorMittal jointly with private equity-backed Nunavut Iron Ore Acquisition Inc is nearing a climax as the companies have taken up over 90 per cent of the common shares of Baffinland, an ArcelorMittal release said yesterday.
Under their outstanding offer of C$1.50 per common share and C$0.10 per 2007 warrant of Bafffinland, ArcelorMittal and Nunavut have taken up an additional 89.7 million shares of Baffinland.
The offerors also said that they have taken up further 1.8 million warrants under the offer, making their total 2007 warrants in possession to approximately 76 per cent of the outstanding 2007 warrants.
The deadline for submission of the securities has also been extended to 17 February 2011, to facilitate Baffinland security holders to tender their holdings.
The companies assured that payment for such taken-up securities would be made within three business days.
The fierce battle between the $65-billion ArcelorMittal and Nunavut was sparked off in September when the latter submitted a hostile takeover offer for Baffinland at C$0.80 a share (See: PE firm launches hostile bid for Canada's Baffinland Iron Mines).