Noble Group, Exxaro in a bidding war for Australia's Territory Resources
10 Jun 2011
Singapore-listed Noble Group today launched a rival A$132.6 million takeover bid for Australian iron ore miner Territory Resources, trumping a A$123 million agreed takeover offer from South African coal miner Exxaro Resources.
Noble, which raised its voting stake to 31.97 per cent yesterday from 30.15 per cent previously by buying shares on the market, offered to buy the remaining shares of Territory Resources at A$0.50 in cash per share, valuing the Perth-based iron ore miner at around A$132.6 million.
Johannesburg-based Exxaro, which holds a 11.2 per cent stake in Territory, had offered to pay A$0.46 per share, in order to expand its iron ore resources in Australia. Its bid had the support of a majority of Territory's board.
Territory operates an iron ore mine at Frances Creek in the Northern Territory, which is close to existing rail infrastructure and the port of Darwin.
The current mine produces approximately 1.6 million tonnes per annum of lump and fine direct shipping ore. Territory also owns rights to iron ore tenements near Frances Creek.
Marketing of Territory's ore is done by Noble through a life-of-mine supply agreement.
"By making this offer to secure our holding in Territory we aim to ensure that its attention on growth will not in future run the risk of being deflected by any more opportunistic corporate actions," Noble said in a statement.
Territory said it would review Noble's bid and would provide shareholders with further advice in due course.
