An old story. But still worth having a look at. Though we have more resources and possible transport solution now, MMK offer is almost 5 times more than the current market cap of $118.4 million.
PROSPECTIVE Pilbara iron ore miner Flinders Mines has welcomed a $554 million takeover offer from a Russian steel producer.
Magnitogorsk Iron and Steel works (MMK) has offered to buy all issued shares in Flinders Mines for 30 cents each, almost double the 16.5 cents Flinders Mines shares closed at yesterday.
Flinders Mines has more than 1.8 billion shares on issue.
News of the take-over offer sent the shares soaring today, up 12 cents, or 73 per cent, at 28.5 cents at 12.46pm (AEDT).
The Flinders Mines board has unanimously recommended the offer to shareholders.
"The proposal from MMK offers Flinders shareholders a very significant premium and value certainty in an uncertain market," chairman robert Kennedy said in a statement today.
An independent expert will be appointed by Flinders Mines to determine whether the MMK is in the best interests of shareholders and, if approved, the transaction could be finalised by March next year.
Production at Flinders Mines' flagship asset, the Pilbara Iron Ore Project, in the West Pilbara region of Western Australia, is expected by early 2015.
A secondary project, Canegrass, is located in the Mid-West region of WA.
GLTA & DYOR
FMS Price at posting:
3.3¢ Sentiment: Buy Disclosure: Held
