Gina Rinehart’s Hancock wins Riversdale takeover battle
Gina Rinehart’s Hancock Prospecting has triumphed in the $806.5m takeover struggle for coal play Riversdale.
Gina Rinehart’s Hancock Prospecting has won the $806.5 million takeover battle for Canadian coal play Riversdale Resources, after private equity group RCF agreed to Hancock’s sweetened offer.
RCF had long loomed as the kingmaker in the takeover given its 48 per cent interest in the unlisted Riversdale, and had originally ruled out accepting Hancock’s original offer of $2.50 a share.
But Hancock on Monday sweetened the bid to $2.70 a share if it lifted its interest in Riversdale to 85 per cent, which was enough to get RCF over the line.
Riversdale, which was founded by former Riversdale Mining executives Michael O’Keeffe and Steve Mallyon, owns the undeveloped Grassy Mountain coking coal project in Alberta.
In a statement, Mrs Rinehart said she was “delighted” to have secured the additional interest.
“For a long time, Hancock has wanted to find a good metallurgical coal opportunity to complement our iron ore projects – both commodities being critical for steelmaking,” she said.
“Grassy Mountain is a good strategic fit for Hancock that adds to our existing iron ore interests in Hope Downs, Roy Hill and Atlas Iron.”
The triggering of the higher price will mean a further payday for Mr O’Keeffe and Mallyon as well as Riversdale’s chief financial officer Anthony Martin.
The trio, who owned a combined 16.5 per cent stake in the company, had already agreed to vend their shares into the Hancock offer but will now be entitled to the $2.70 per share. Their stake is worth more than $133 million under the higher offer.
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