Article by Emma Davies, The Australian Mining Review, March 1st
GINA Rinehart’s Hancock Corporation has announced an all-cash offer to acquire all of the ordinary shares in Riversdale Resources, in which Hancock does not already have a relevant interest.
Riversdale is an Australian coal development company with assets in the Crowsnest Pass Complex in Alberta, Canada, including the Grassy Mountain project.
Hancock had offered a price of $2.20 per share and would increase the offer price to $2.50 per share (totalling a bid of almost $600 million) if Hancock’s shareholding in Riversdale reached more than 50 per cent on a diluted basis before the close of the offer.
This would offer a 47 per cent premium to the weighted average subscription price of $1.70 under which Hancock acquired its current shareholdings in August and September 2018 and would mean a 43 per cent premium to the $1.75 maximum subscription price for any new share issued by Riversdale during the last 12 months.
If Hancock achieved a shareholding of not more than 50 per cent on a diluted basis than the $2.20 per share offer would represent a 29 per cent premium to Hancock’s average previous subscription price and a 26 per cent premium to the maximum new issuance price during the last 12 months.
“On behalf of Hancock Prospecting and Hancock Corporation, we are delighted to provide the shareholders of Riversdale with this all cash offer,” Hancock Prospecting executive director Jay Newby said.
“The directors of Hancock consider that its premium pricing and low conditionality make it a compelling opportunity for Riversdale shareholders.
“All shareholders are encouraged to accept the offer at their earliest opportunity.”
Given Riversdale was unlisted, Hancock’s offer provided all Riversdale’s shareholders a rare opportunity to sell their shares at a compelling cash price.
Hancock Prospecting currently held 19.8 per cent of Riversdale’s issued shares.
