(Adds Exxaro comments, analyst, updates shares)
* Exxaro aims to secure 75 percent acceptance
* Exxaro seeking operational exposure in iron ore
* African Iron shares jump after news on deal
Jan 11 (Reuters) – South African diversified miner
Exxaro Resources made a bid worth up to A$338 million
($349 million) for African Iron, targeting the
Australian-listed company’s Mayoko iron ore project in the
Republic of the Congo.
The cash offer of up to A$0.57 a share sent African Iron’s
shares up, to close 40 percent higher at A$0.56 on Wednesday,
indicating investors expect the deal to go through.
Exxaro, South Africa’s second-largest coal producer and a
major supplier to power utility Eskom, is scouting Africa and
Australia for projects to expand into other commodities,
especially iron ore and also copper.
Exxaro said Africa Iron’s assets would provide it with an
opportunity to meet its objective of gaining exposure in iron
ore. It believed the deal would go through.
Last year, Exxaro’s $130 million bid for Australia’s
Territory Resources was trumped by Noble Group, but
the company said it remained keen to buy iron ore assets and
eventually to produce 10 million tonnes a year of the key
ingredient for steel-making.
Continued…
