Hancock Prospecting makes Atlas takeover bid ‘unconditional’

Hancock Prospecting has made its 100 per cent acquisition of Atlas Iron’s shares unconditional, in an effort to push forward its all-cash takeover bid.

The offer is scheduled to close on August 3.

Effectively, it means shareholders who have voted to accept the offer will receive cash payments by August 3.

Meanwhile, shareholders who have accepted the offer from last Friday onwards will be paid within just seven days of acceptance.

Earlier this month, Atlas Iron’s shareholders were advised by the company’s directors to unanimously accept Redstone’s takeover bid of 4.2-cents-a-share.

The proposal was considered to provide “certainty of value” and a “compelling premium” to the company’s previous trading values.

When announcing its offer in June, Hancock’s subsidiary Redstone Corporation only made its offer conditional upon the usual “prescribed occurrences”.

Redstone has now waived that prescribed occurrence condition, making the offer fully unconditional.

Hancock chief executive Garry Korte said, “The offer is both fair and reasonable, as well as the risks associated with the Atlas business and associated with remaining a shareholder in it. The Redstone offer is the only offer currently available to Atlas shareholders.”

In a statement released by the company in June, Hancock Prospecting said it would conduct a strategic review of Atlas Iron’s port arrangements – particularly Port Hedland – should its takeover take a successful turn. However, Atlas Iron has since confirmed it has no exclusive rights at the major Western Australian iron ore port.

Redstone was incorporated in April for the principal purpose of making the offer and acquiring Atlas.

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