core sector communique

Rio Tinto bid for Riversdale declared unconditional

 

• Offer now unconditional
• Offer price increase to $16.50 if Rio Tinto obtains more than 47 per cent interest by 6 April 2011

Rio Tinto Jersey Holdings 2010 Limited (RTJ), a wholly-owned subsidiary of the Rio Tinto Group, has waived the minimum acceptance condition to its offer (Offer) for Riversdale Mining Limited (Riversdale).

As the Offer is now unconditional, Riversdale shareholders who have accepted the Offer on or before today's date will be paid the $16.00 Offer price by 5 April 2011. Riversdale shareholders who accept the Offer after today's date will be paid the Offer price within five business days of that acceptance being received.

RTJ will increase the Offer price to $16.50 per share if it obtains an interest in more than 47 per cent of Riversdale shares by 7.00pm (Sydney, Australia time) on 6 April 2011.

Riversdale shareholders who have already accepted the Offer or accept the Offer prior to RTJ obtaining a more than 47 per cent interest of Riversdale shares will still be entitled to receive $16.50 per share if RTJ subsequently obtains that interest. These shareholders will receive payment of this additional amount within five business days of RTJ obtaining a more than 47 per cent interest.

As at 9.00am (Sydney, Australia time) today, RTJ has secured an interest in 41.04 per cent of Riversdale shares on issue, including the shares the subject of Institutional Acceptance Facility (IAF) instructions, which will now be converted into actual acceptances of the Offer in accordance with the terms of the IAF. Accordingly, RTJ must obtain an interest in more than an additional 5.96 per cent of Riversdale shares for the Offer price to increase to $16.50 per share.

Rio Tinto Energy chief executive Doug Ritchie said “Riversdale’s shareholders have demonstrated great support for the Offer to date. Now that the Offer is unconditional, I would encourage those shareholders who have not yet accepted to do so as soon as possible to maximise the prospect of all shareholders receiving the increased Offer price of $16.50 per share. We look forward to moving quickly in developing Riversdale’s projects. Rio Tinto's experience in infrastructure and developing large projects, combined with our financial capacity, will be important in taking Riversdale's asset base to the next stage of development.”