Riversdale Mining [ASX: RIV] - Targets Statement: all directors recommend Rio Tinto Offer to shareholders Riversdale Mining Limited (ASX: RIV) has today issued its Targets Statement in which all the directors of Riversdale recommend, in the absence of a superior proposal, that Riversdale shareholders accept the offer by Rio Tinto Jersey Holdings 2010 Limited (Rio Tinto) to purchase all Riversdale shares for $16.00 cash per share (Offer). Mr NK Misra is one of the directors of Riversdale and he is also the Vice President and Group Head of Mergers and Acquisitions at Tata Steel Limited (TSL). While Mr NK Misra recommends the Offer, in the absence of a superior proposal, his recommendation is given in his capacity as a director of Riversdale and does not reflect TSLs position which, through its wholly owned subsidiary TS Global Minerals Holdings Pte Ltd (TSGMH), is the largest shareholder of Riversdale. TSL and TSGMH reserve all their rights in relation to TSGMHs Riversdale shareholding and any response to the Offer. The issue of the Targets Statement today follows Riversdales announcement on 23 December 2010 that it had entered into a Bid Implementation Agreement with Rio Tinto Limited. The Targets Statement issued today by Riversdale contains Riversdales formal response to the Offer and it includes the unanimous recommendation of the directors that Riversdale shareholders accept the Offer, in the absence of a superior proposal. A copy of the Targets Statement will be sent to all shareholders. The Riversdale directors recommendation The Target Statement sets out the detailed reasons why Directors recommend that Riversdale shareholders accept the offer, in the absence of a superior proposal. The directors consider that the Offer by crystallising value now for shareholders investment in Riversdale provides an attractive alternative to holding their Riversdale shares until the major assets of Riversdale the Benga Project and the Zambeze Project both of which are located in Mozambique come into full production. Executive Chairman Mr OKeeffe said. Taking these projects from their present pre-production status into full production will take a number of years; it will involve very material capital expenditure and it will be subject to significant risks and uncertainties, as explained in greater detail in the Targets Statement. Mr OKeeffe said. Furthermore, the directors believe that, in the absence of the Offer, a superior proposal or speculation that a superior proposal may be made, the market price for Riversdale shares is likely to fall below the Offer price. As of today, no superior proposal has been received by Riversdale and the Company is not aware of any party having an intention to make such a proposal. Rio Tintos Offer remains open for acceptance until 7.00pm AEST on 18 February 2011, unless extended or withdrawn. Shareholders are advised to review the full details of the Riverdale Directors recommendations in the Targets Statement sent to them by the company, and also available for review and downloading at www.riversdalemining.com.au Shareholders are encouraged to seek financial and legal advice without delay or contact the Riversdale Shareholder Information Line on 1300 038 427 (local) or +61 3 9415 4198. Riversdale Mining has also released a Quarterly Activities Report today, for the period ending 31 December 2010. Please find it on the following link: http://riversdalemining.com.au/media/announcements/2010/RIV_Quarterly_Dec_10_-_MASTER.pdf For further information, please contact: Michael OKeeffe Executive Chairman Ph: +612 8299 7900 Steve Mallyon Managing Director Ph: +612 8299 7900 Niall Lenahan Company Secretary Ph: +612 8299 7900 Media: Fortbridge Bill Kemmery Ph: +612 9331 0655 Mob: +61 400 122 449 Email: Fortbridge.NET is a specialist web-based service for clients ("Issuer") of Fortbridge Consulting Pty Ltd. DISCLAIMER: The message and attachment issued with this email may contain "forward-looking statements", which are projections that reflect the Issuer`s reasonable beliefs based on information currently available. Fortbridge is a Public Relations consultancy. PRIVACY: You have been regarded as a relevant contact through research. Please consider the environment before printing this document.
|
||||||||||||
|