[miningmx.com] — EXXARO Resources has confirmed that the $0.46 per share offered under the takeover bid for Territory Resources would not be increased, and the offer period would not be extended beyond the current closing date of midnight on July 4.
Exxaro’s executive general manager of business growth, Ernst Venter, said that after carefully considering all options, Exxaro had decided not to increase its bid following a higher offer for Territory by Noble Group.
“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 a significant uplift in the operating value of the assets,” said Venter.
“However, Exxaro has a disciplined approach to growth and acquisitions, and the company will not bid above what we see as fair value for the assets. Exxaro is focused on further diversifying and will continue to review a number of other potential opportunities in both iron ore and Australia,” he said.
As the offer is still subject to a number of conditions that Exxaro does not intend to waive at this stage, it is likely that the Exxaro offer will lapse on July 4.
Following the Territory Board’s recommendation of the Noble offer, Exxaro has formally requested payment from Territory of the agreed break fee of approximately $1.56m, pursuant to the bid implementation agreement between the parties.
