Fortescue's takeover of Red Hawk Mining turns unconditional
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The news: Fortescue's off-market takeover bid for iron ore firm Red Hawk Mining is now unconditional after the metal mining giant increased its voting power in the ASX small cap to 87.25%.
The numbers: Fortescue, through its wholly owned subsidiary FMG Pilbara, has seen its $254 million offer accepted by Red Hawk's two largest shareholders Todd Corporation and OCJ Investment Australia, as well as the miner's managing director and chief executive Steven Michael.
An ASX filing dated 7 February shows that Michael sold his entire 4.5 million shareholding in the company to Fortescue for $1.20 per share.
The context: Fortescue said its takeover offer is now unconditional and payment will be dispatched to Red Hawk shareholders who have accepted the offer to date.
Australia’s third-biggest iron ore exporter will acquire Red Hawk’s undeveloped Blacksmith iron ore project, located 30km west of Fortescue's Solomon operations in Western Australia.
The sources: ASX announcement, ASX announcement
