Gilbert + Tobin has advised Exxaro Resources Limited, a South African-based mining company listed on the Johannesburg Stock Exchange (JSE:EXX), on its $338 million cash takeover bid for ASX listed iron ore exploration and development company, African Iron Limited (ASX: AKI). African Iron’s key asset is its 92% interest in the Mayoko iron ore project in the Republic of Congo.
“We are delighted to have advised Exxaro on such a significant transaction for the company, which gives it the opportunity to realise its stated ambitions of developing a significant iron ore asset and to add significant value to the project,” said Neil Pathak.
The bid was successful in a very short time, with the bid being announced on 11 January 2012 and achieving more than 90% acceptances on 27 February. “It is particularly pleasing for Gilbert + Tobin to assist Exxaro on the first takeover bid for an ASX listed company to be both announced and completed in 2012,” said Julie Athanasoff.
The takeover bid involved a two-tier offer price structure which increased from $0.51 per share to $0.57 per share upon Exxaro obtaining an interest of 75% in African Iron. The structure was a key aspect of the success of the deal.
Corporate Advisory partners Neil Pathak and Julie Athanasoff led the team, assisted by Energy and Resources partners Michael Blakiston and Claire Boyd, and lawyers Ailyn Choo, Nirangjan Nagarajah and Callista Barrett.
Gilbert + Tobin has experience and expertise in over 25 African countries.
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