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Red Hawk Mining Limited (ASX:RHK) Announces Fortescue Majority Interest Acquisition

ClubAI 10:32 am

Takeover Offer Update

Red Hawk Mining Limited (ASX:RHK) announced that FMG Pilbara Pty Ltd, a subsidiary of Fortescue Ltd (ASX:FMG), has acquired a majority interest of 66.23% in the company following the acceptance of the Offer by TIO (NZ) Limited. The Increased Offer Price of $1.20 per Red Hawk Share will be payable if FMG obtains a 75% stake by 7:00pm (AEDT) on 4 February 2025. FMG has pledged to waive the only condition of the Offer within 14 days of acquiring at least a 50.1% interest, making the Offer unconditional.

Shareholder Acceptance

TIO (NZ) Limited, Red Hawk’s largest shareholder with a 60.71% interest, has accepted the Offer, leading to FMG’s majority stake. Shareholders who accept the Offer will receive $1.05 per share or $1.20 if the Increased Offer Condition is met. Upon the Offer becoming unconditional, payments will be made within 10 business days.

Board Recommendation

The Red Hawk Board unanimously recommends shareholders accept the Offer at the Base or Increased Offer Price, subject to the Independent Expert’s report. Directors intend to accept the Offer for all shares they hold. Shareholders are encouraged to review the Target’s Statement and the Independent Expert’s Report for detailed reasons.

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Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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