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Monday 22

October, 2018 5:23 PM



Rinehart lifts bid for final Atlas shares

Rinehart lifts bid for final Atlas shares

Gina Rinehart's Hancock Prospecting is prepared to raise its offer for Atlas Iron to get total control of the junior miner.

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By AAP 26.09.2018 10:30 AM

Gina Rinehart's Hancock Prospecting is prepared to raise its offer for Atlas Iron in an attempt to buy the remaining shares.

Hancock subsidiary Redstone has a 77 per cent stake in the junior miner and will raise its offer price from 4.2 to 4.6 cents per share if its holding hits 87 per cent before the extended deadline of next Tuesday.

The teaser will add $37 million on top of the original $390 million bid.

Atlas Iron's board already recommended Redstone's bid over one from ASX-listed rival Mineral Resources, and any shareholder who has already accepted would also receive an additional 0.4 cents-per-share payment.

Andrew Forrest's Fortescue Metal Group attempted to halt the takeover in June through the Takeovers Panel but the industry watchdog declined the case after Redstone agreed to clarify its bid.

Atlas's assets include the rights to potentially valuable undeveloped port capacity in Port Hedland, northern WA, which analysts UBS have suggested might have attracted Fortescue's interest.

Fortescue had reduced its stake in Atlas from 19.9 to 11.4 per cent by early August.

Atlas shares opened up 0.2 cents, or five per cent, to 4.4 cents at 1010 AEST.

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