Iron ore takeover

The board Polaris Metals has recommended its shareholders accept a takeover bid from Mineral Resources

The board of aspiring Australian iron ore producer Polaris Metals has recommended its shareholders accept a takeover bid from Mineral Resources.

“Subject to the Independent Expert concluding that the offer is fair and reasonable to Polaris shareholders, the directors unanimously recommend shareholders accept the offer in the absence of another offer,” the board said in a statement to the Australian Securities Exchange.

Mineral Resources’ all scrip bid values Polaris at $0.38 a share, which Polaris said represents a 42% premium on the company’s value.

Under the terms of the deal Polaris shareholders will receive one share in Mineral Resources for every 12.5 Polaris shares held.

Mineral Resources is a mining services and mineral processing company with operations in contract crushing, general mine services, infrastructure provision and recovery of base metal concentrate for export sales.

Polaris said the deal, which will see the companies with a combined market capitalization of $651 million, will allow it to step up production at its Yilgarn iron ore operation in Western Australia.

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