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Highlights
- Fortescue’s subsidiary FMG Pilbara Pty Ltd now holds a 66.23% stake in Red Hawk Mining.
- Red Hawk’s largest shareholder, TIO (NZ) Limited, has accepted FMG’s offer, securing majority control.
- Increased Offer Price of $1.20 per share applies if FMG reaches a 75% stake by Feb 4, 2025.
- The offer will become unconditional once FMG holds at least 50.1%, with payments made within 10 business days.
- Red Hawk Board and Directors support the offer, urging shareholders to accept in the absence of a better deal.
FMG Pilbara Pty Ltd, a subsidiary of Fortescue Ltd (ASX:FMG), has successfully gained majority control of Red Hawk Mining (ASX:RHK), marking a significant step in its off-market takeover bid. The development follows the acceptance of the offer by Red Hawk’s largest shareholder, TIO (NZ) Limited, which has propelled FMG’s stake in the company to 66.23%.
Key Takeaways from the Takeover Progress
- FMG Pilbara Pty Ltd now holds a 66.23% stake in Red Hawk Mining following TIO’s acceptance.
- Shareholders who accept the offer will receive $1.05 per share.
- A higher $1.20 per share offer applies if FMG reaches a 75% stake by February 4, 2025.
- The offer will become unconditional once FMG crosses the 50.1% ownership threshold, with payments to shareholders made within 10 business days.
- The Red Hawk Board and Directors support the offer, advising shareholders to accept in the absence of a better proposal.
FMG Pushes Toward Full Acquisition
With majority control secured, FMG is in a strong position to complete its full acquisition of Red Hawk Mining. The Increased Offer Price of $1.20 per share is contingent on FMG reaching at least 75% ownership before the February 4 deadline. This incentive is expected to encourage additional shareholder participation.
FMG has also announced that it will waive the only condition attached to the deal within 14 days of surpassing 50.1% ownership, effectively making the offer unconditional. This means that any Red Hawk shareholders who accept the deal can expect to receive their payments within 10 business days.
Red Hawk Board Backs the Deal
The Red Hawk Board of Directors continues to unanimously support FMG’s offer, urging shareholders to accept the deal in the absence of a superior proposal. Additionally, all Red Hawk directors who hold shares have confirmed their intent to accept the offer, further reinforcing confidence in the takeover bid.
What’s Next for Red Hawk Mining?
As FMG works toward securing a 75% stake, the next phase of the deal will depend on further shareholder participation. If FMG surpasses the 75% threshold by February 4, 2025, the Increased Offer Price of $1.20 per share will become payable, benefiting all shareholders who accepted the bid.
