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
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.