Rio Tinto lobs takeover proposal to Coal & Allied Industries
Rio Tinto (ASX:RIO) has put a non-binding, conditional and indicative proposal to Coal & Allied Industries (ASX: CNA) which could lead to a takeover offer being made to acquire all the outstanding shares in CNA not held by Rio Tinto and Mitsubishi Development Pty Ltd.
Rio has given no assurances that the Indicative Proposal will lead to a takeover offer being made.
If it proceeds, the Indicative Proposal is expected to be implemented by way of an off-market takeover bid by a company that will be jointly owned by Rio Tinto and Mitsubishi.
If completed, the Indicative Proposal would result in those parties owning 80% and 20% of CNA respectively. Rio Tinto currently owns 75.7% of CNA and Mitsubishi currently owns 10.2% of CNA.
The Indicative Proposal by Rio contemplates an offer of $122.00 cash for each CNA share that is not owned by Rio Tinto and Mitsubishi, with existing CNA shareholders retaining the recently declared dividend of $1.20 per share.
The Indicative Proposal would value CNA equity at $10.6 billion.
Related news
- Yellow Diamonds - A Gap in the Diamond market
- Coffee with Samso: Episode 1, Australian Tungsten Projects and How the Chinese Market View The Tungsten sector
- Chasing for Kryptonite, the unknown other Lithium source
- What is In-Situ Recovery? Mining in a National Park with no environmental footprint
- Buds & Duds: Cannabis stocks drop but Weekend Unlimited shares jump on CBD hemp seed news
- Hemispherx treats first patient with cancer drug Ampligen in Phase 2 clinical trials
- THC Global granted cannabis Manufacture Licence, shares surge 20%
.jpg)