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Andrew Forrest turns a blowtorch on Gina Rinehart's bid for Atlas Iron

Mining News - Published on Thu, 28 Jun 2018

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Business Insider reported that the battle of the billionaires for junior iron ore miner Atlas Iron just became more than a simple takeover joust. NCZ Investments, a subsidiary of Andrew ‘Twiggy’ Forrest’s Fortescue Metals, just accused Gina Rinehart’s Redstone Corporation, owned by her Hancock Prospecting company, of misleading statements. Forrest has taken his complaint to the official Takeovers Panel, saying Rinehart’s company has made material omissions in relation to Atlas’s business, assets and employees. Forrest’s Fortescue Metals has built a 19.9% holding in Atlas, enough to block any takeover. And now it’s asking the Takeovers Panel to restrain Rinehart’s Redstone from dispatching its bidder’s statement and releasing any other information regarding the bid while the panel considers the application.

The panel says NCZ Investments submits that Redstone’s bidder’s statement has:

1. misleading statements and material omissions regarding Redstone’s intentions in relation to Atlas’s business, assets and employees and Redstone’s ability to achieve those intentions

2. material omissions regarding the implications of Redstone’s takeover bid for Atlas’s Term Loan B Facility and Hancock Prospecting’s intentions in respect of financing the repayment of that facility and

3. misleading statements about the merits, terms and operation of Redstone’s takeover bid.

The suitors see upside in consolidating the Atlas assets, which have high iron content ore, in the Pilbara into their own. Mr Tad Watroba executive director of Hancock said that “We see long term synergies between the Atlas assets and the other iron ore interests within the Hancock Group. Mr Watroba said that “There is potential to unlock value through the future development of Atlas resources as part of our wider system of operations.”

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Posted By : Rabi Wangkhem on Thu, 28 Jun 2018
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