Xstrata secures majority in Sphere Minerals despite Sing Tan raising stake
11 Nov 2010
Swiss mining giant Xstrata yesterday secured majority ownership in it's A$514-million bid for Sphere Minerals even as Singapore's Sin-Tang Developments Pte Ltd raised its stake in the Australian iron ore miner.
Xstrata moved closer in the two-month battle to control Sphere after it received 51.12-per cent acceptance to its A$514 million bid, according to the Lug-based miner's regulatory filing yesterday with the Australian stock exchange.
Directors of Sphere, who hold around 5.46 per cent stake, had already committed to Xstrata's offer in August, and the Swiss miner yesterday secured 32.13 per cent for its acceptance facility after Acorn Capital and Genesis Investment Management, the major shareholders of Sphere, committed to tender into Xstrata's $3-a-share offer.
Xstrata also raised its own holdings to 18.99 per cent, taking its total stake in Sphere to a controlling 51.12 per cent.
The battle for control of Sphere had intensified yesterday when Sin-Tang, which is backed by a few Chinese steelmakers, yesterday said that it had received the Australian Foreign Investment Review Board approval to raise its stake in Sphere up to 19.9 per cent.
Sin-Tang yesterday bought 2 million Sphere shares on-market and increased its stake from 10.77 per cent to 14.67 per cent.