Hancock Prospecting heightens offer price to Atlas Iron

Hancock Prospecting has increased its offer price to Atlas Iron, from 4.2 cents to 4.45 cents per Atlas share, in an attempt to secure at least 87 per cent voting power in the junior miner.

If this condition is not satisfied, Hancock through its subsidiary Redstone Corporation will not increase the offer price.

Any Atlas shareholder who has accepted the offer will be entitled to the increased offer.

The move was concurrent with Hancock’s extension of the offer, which now remains open until September 21.

Redstone currently holds a voting power of 76.3 per cent in Atlas, an increase from 68.48 per cent last month due to Atlas shareholders’ acceptance of the offer.

Last month, Fortescue sold its 19.9 per cent stake in Atlas down to 11.37 per cent, following a confirmation that Atlas holds no exclusive rights at major Western Australian iron ore port, Port Hedland.

Hancock in its takeover bid of Atlas has on many occasions extended the offer and made its acquisition unconditional.