Huge Riversdale sign
almost blocks the portal
at its Benga project
in Mozambique
Melbourne, Australia — MININGREVIEW.COM — 21 March 2011 – Global mining giant Rio Tinto has attracted more than 50% interest Mozambique-focused coal miner Riversdale Mining and has extended the deadline for its takeover offer of the Australian-based and listed miner by three trading days to 28 March 2011.

Revealing this in a statement issued here, the company said that Rio Tinto Jersey Holdings 2010 Limited (RTJ) “’ a wholly-owned subsidiary of the Rio Tinto Group “’ had extended the offer.

The statement stipulated that, following discussions with market participants, RTJ would:

  • Extend the A$16.50 offer price increase by three trading days to 28 March 2011, if RTJ obtained an interest in more than 50 % of Riversdale shares, including institutional acceptances lodged under RTJ’s Institutional Acceptance Facility (IAF) by 7.00pm (Sydney time) on that date; and
  • Extend the offer period for its takeover bid for Riversdale by three trading days until 7.00pm (Sydney time) on Wednesday 6 April 2011, unless extended.

It added that RTJ understood the additional time would allow some market participants to finalise the unwinding of equity swaps and to settle trades that have occurred on the Australian Securities Exchange (ASX) before they could accept into the offer or the IAF.

Since RTJ announced the conditional offer price increase to A$16.50 on 10 March 2011, there has been a substantial increase in both the number of Riversdale shares covered by institutional acceptances lodged with the IAF, as well as additional direct acceptances of the offer. The total of the Riversdale shares in which RTJ has a relevant interest, plus shares subject to IAF instructions, has risen to 34.94% of the Riversdale shares on issue.

The offer period for RTJ’s bid for Riversdale will close on 6 April 2011, unless extended.