Champion Iron receives shareholder approval for Rana Gruber takeover

The news: Champion Iron has achieved the minimum acceptance closing condition for its proposed takeover of Norwegian iron ore producer Rana Gruber after the target’s shareholders voted in favour of the acquisition.

The numbers: The proposal received approval from 90.07% of Rana Gruber’s issued and outstanding share capital and voting rights.

Quebec-headquartered Champion Iron is now set to own more than 90% of Rana Gruber, with the intention of carrying out a compulsory acquisition of its remaining shares.

Champion Iron announced the USD289 million ($404 million) proposal in December. The company expects to fund the deal through a combination of equity, debt and cash on hand, including a USD100 million private equity placement with investment group La Caisse, and a USD150 million term loan underwritten by The Bank of Nova Scotia.