African Iron Ltd : Exxaro Takeover Offer - Update from AKI Chairman
01/23/2012 | 09:26pm
24 January 2012
Dear African Iron Shareholders and Optionholders
UPDATE FROM THE CHAIRMAN ON THE EXXARO TAKEOVER OFFER
As you would be aware, on 11 January 2012, Exxaro Resources
Limited (JSE: EXX) and African Iron jointly announced an
off-market, cash takeover offer by Exxaro for all of the
shares and listed options in African Iron.
The Exxaro takeover offer has been recommended by the African
Iron Board, in the absence of a superior proposal. I can now
advise you that on 19 January 2012 each African Iron director
accepted the Exxaro offer for all of the African Iron shares
and listed options that they owned or controlled.
In summary the Exxaro offer is:
Share Offer: Exxaro is offering A$0.51 cash for each
African Iron share, and Exxaro will increase the offer price
to A$0.57 cash per share if it acquires a relevant interest
in 75% or more of all of the African Iron shares (on a fully
diluted basis).
Option Offer: Exxaro is offering A$0.31 cash for each
African Iron listed option, and Exxaro will increase the
offer price to A$0.37 cash per listed option if it acquires a
relevant interest in 75% or more of all of the African Iron
shares (on a fully diluted basis).
The Exxaro offer will remain open until 5.00pm Perth time on
14 February 2012 (unless extended).
By now you should have received a copy of both Exxaro
Australia's Bidder's Statement and African Iron's Target's
Statement which outline the details of the offer. I urge you
to read both of these documents and if necessary seek
independent advice taking account of your individual
circumstances.
I would like to also update you on a number of developments
since the announcement of the offer:
