Exxaro says still keen on iron-ore as it bows out of Territory takeover
By: Esmarie Swanepoel 23rd June 2011
PERTH (miningweekly.com) − South African diversified miner Exxaro Resources said on Thursday that it would not increase or extend its 46c-a-share takeover offer for Australian iron-ore miner Territory Resources.
Exxaro, which was trumped by Territory shareholder Noble with a 50-c-a-share offer, would not bid above what it saw as fair value for assets, GM for business growth Ernst Venter said.
?Territory holds assets that have not been able to realise their full potential under current debt and ownership arrangements. We felt that the addition of our balance sheet, bulk commodity experience and in-house iron-ore beneficiation expertise to the assets would have resulted in significant uplift in the operating value of these assets,? said Venter.
He added that Exxaro would continue to review other opportunities in both iron-ore and Australia.
The board of Territory Resources earlier this month switched its recommendation away from Exxaro, backing a higher from Noble. In May, Territory abandoned a $20.7-million debt-to-equity Noble deal, in favour of Exxaro?s A$123-million bid.
Territory is the owner and operator of the Frances Creek mine, in the Northern Territory, which exports some 2.2-million tons of high-grade lump and fines product a year.
Exxaro?s offer for the iron-ore miner was still subject to a number of conditions, which Venter said would not be waived at this stage. He added that it was likely that the offer would lapse on July 4.
