Hin­dalco Ac­cepts Bid for Aus­tralian Arm

Me­talsX to buy 4.5 AB Min­er­als shares in ex­change of 1 fully-paid or­di­nary share of Me­talsX & Aus­tralian $0.8 in cash for ev­ery share held

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

Mum­bai: Aditya Birla Group’s Hin­dalco In­dus­tries on Tues­day said it has agreed to ac­cept a takeover bid from Me­talsX for its partly-owned Aus­tralian sub­sidiary Aditya Birla Min­er­als in a deal val­ued at A$103 mil­lion (.`530 crore).

Me­talsX will buy 4.5 Aditya Birla Min­er­als shares in ex­change of one fully-paid or­di­nary share of Me­talsX and Aus­tralian $0.8 in cash for ev­ery Aditya Birla Min­er­als share held, Hin­dalco said in a reg­u­la­tory fil­ing. Hin­dalco owns 51% stake in Aditya Birla Min­er­als, while Me­talsX al­ready owns 29.8% shares. The in­creased of­fer equates to A$0.329 per Aditya Birla Min­er­als share based on April 20 clos­ing price on the Aus­tralian stock mar­ket. The com­pany’s last traded price was A$0.295 apiece. “We would like to in­form that Hin­dalco has com­mu­ni­cated to ABML its in­ten­tion to ac­cept the of­fer sub­ject to re­ceiv­ing the ap­proval of RBI and no bona fide su­pe­rior pro­posal be­ing an­nounced by a third party within five busi­ness days of Me­tals X an- nounc­ing its in­ten­tion,” Hin­dalco said in a state­ment.

Aditya Birla Min­er­als stated that it is clos­ing the strate­gic re­view process it had un­der­taken in the past six months, which helped a ‘ro­bust’ price dis­cov­ery.

Aditya Birla Min­er­als is a cop­per min­ing com­pany based in Perth, Western Aus­tralia. The ac­qui­si­tion gives Me­tals X, pre­dom­i­nately a gold and tin miner, con­trol of Aditya Birla Min­eral’s sole op­er­at­ing cop­per mine called Nifty in Western Aus­tralia.

Nifty cop­per mine sup­plies raw ma­te­rial re­quired for Hin­dalco’s cop­per smelter at Da­hej in Gu­jarat. In Septem­ber, Aditya Birla Min­er­als had sold its Mt Gor­don cop­per mine for A$15 mil­lion, less than the A$21 mil­lion it paid for it in 2003. Me­talsX and ABML have been in a long­drawn takeover bat­tle for close to a year. This is Me­talsX’s sec­ond bid for Aditya Birla Min­er­als. It ear­lier of­fered to give one of its shares for ev­ery five of Aditya Birla Min­eral shares.

Hin­dalco has been ex­plor­ing strate­gic al­ter­na­tives with its Aditya Birla Min­er­als, in­clud­ing re­view­ing own­er­ship op­tions avail­able to the com­pany.

Shares of Hin­dalco closed up 5% at .₹ 103.14 on BSE on Tues­day.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.