Riversdale Mining [ASX: RIV] - Target’s Statement: all directors recommend Rio Tinto Offer to shareholders
Riversdale Mining Limited (ASX: RIV) has today issued its Target’s Statement in which all the directors of Riversdale recommend, in the absence of a superior proposal, that Riversdale shareholders accept the offer by Rio Tinto Jersey Holdings 2010 Limited (Rio Tinto) to purchase all Riversdale shares for $16.00 cash per share (Offer).
Mr NK Misra is one of the directors of Riversdale and he is also the Vice President and Group Head of Mergers and Acquisitions at Tata Steel Limited (TSL). While Mr NK Misra recommends the Offer, in the absence of a superior proposal, his recommendation is given in his capacity as a director of Riversdale and does not reflect TSL’s position which, through its wholly owned subsidiary TS Global Minerals Holdings Pte Ltd (TSGMH), is the largest shareholder of Riversdale. TSL and TSGMH reserve all their rights in relation to TSGMH’s Riversdale shareholding and any response to the Offer.
The issue of the Target’s Statement today follows Riversdale’s announcement on 23 December 2010 that it had entered into a Bid Implementation Agreement with Rio Tinto Limited.
The Target’s Statement issued today by Riversdale contains Riversdale’s formal response to the Offer and it includes the unanimous recommendation of the directors that Riversdale shareholders accept the Offer, in the absence of a superior proposal. A copy of the Target’s Statement will be sent to all shareholders.
The Riversdale directors’ recommendation
The Target Statement sets out the detailed reasons why Directors recommend that Riversdale shareholders accept the offer, in the absence of a superior proposal.
“The directors consider that the Offer by crystallising value now for shareholders’ investment in Riversdale provides an attractive alternative to holding their Riversdale shares until the major assets of Riversdale – the Benga Project and the Zambeze Project both of which are located in Mozambique – come into full production.” Executive Chairman Mr O’Keeffe said.
“Taking these projects from their present pre-production status into full production will take a number of years; it will involve very material capital expenditure and it will be subject to significant risks and uncertainties, as explained in greater detail in the Target’s Statement.” Mr O’Keeffe said.
Furthermore, the directors believe that, in the absence of the Offer, a superior proposal or speculation that a superior proposal may be made, the market price for Riversdale shares is likely to fall below the Offer price.
As of today, no superior proposal has been received by Riversdale and the Company is not aware of any party having an intention to make such a proposal.
Rio Tinto’s Offer remains open for acceptance until 7.00pm AEST on 18 February 2011, unless extended or withdrawn.
Riversdale Mining Limited (ASX: RIV) has today issued its Target’s Statement in which all the directors of Riversdale recommend, in the absence of a superior proposal, that Riversdale shareholders accept the offer by Rio Tinto Jersey Holdings 2010 Limited (Rio Tinto) to purchase all Riversdale shares for $16.00 cash per share (Offer).
Mr NK Misra is one of the directors of Riversdale and he is also the Vice President and Group Head of Mergers and Acquisitions at Tata Steel Limited (TSL). While Mr NK Misra recommends the Offer, in the absence of a superior proposal, his recommendation is given in his capacity as a director of Riversdale and does not reflect TSL’s position which, through its wholly owned subsidiary TS Global Minerals Holdings Pte Ltd (TSGMH), is the largest shareholder of Riversdale. TSL and TSGMH reserve all their rights in relation to TSGMH’s Riversdale shareholding and any response to the Offer.
The issue of the Target’s Statement today follows Riversdale’s announcement on 23 December 2010 that it had entered into a Bid Implementation Agreement with Rio Tinto Limited.
The Target’s Statement issued today by Riversdale contains Riversdale’s formal response to the Offer and it includes the unanimous recommendation of the directors that Riversdale shareholders accept the Offer, in the absence of a superior proposal. A copy of the Target’s Statement will be sent to all shareholders.
The Riversdale directors’ recommendation
The Target Statement sets out the detailed reasons why Directors recommend that Riversdale shareholders accept the offer, in the absence of a superior proposal.
“The directors consider that the Offer by crystallising value now for shareholders’ investment in Riversdale provides an attractive alternative to holding their Riversdale shares until the major assets of Riversdale – the Benga Project and the Zambeze Project both of which are located in Mozambique – come into full production.” Executive Chairman Mr O’Keeffe said.
“Taking these projects from their present pre-production status into full production will take a number of years; it will involve very material capital expenditure and it will be subject to significant risks and uncertainties, as explained in greater detail in the Target’s Statement.” Mr O’Keeffe said.
Furthermore, the directors believe that, in the absence of the Offer, a superior proposal or speculation that a superior proposal may be made, the market price for Riversdale shares is likely to fall below the Offer price.
As of today, no superior proposal has been received by Riversdale and the Company is not aware of any party having an intention to make such a proposal.
Rio Tinto’s Offer remains open for acceptance until 7.00pm AEST on 18 February 2011, unless extended or withdrawn.
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