Atlas Iron Limited announced that it has reached agreement with Mineral Resources Limited (“MinRes”) to combine by way of scheme of arrangement pursuant to which MinRes will acquire the entire issued capital of Atlas (“Scheme”).
The transaction will be effected pursuant to a Scheme Implementation Deed (“SID”) under which Atlas has agreed to propose the Scheme to its shareholders. Upon implementation, Atlas will become a wholly owned subsidiary of MinRes. A copy of the SID is annexed to this announcement.
Pursuant to the Scheme, Atlas shareholders will be offered 1 MinRes share for every 571 Atlas shares held at the record date.
The Scheme implies a merger ratio of approximately 8.2% / 91.8% (Atlas / MinRes) in the combined business.
Based on the closing price of Atlas and MinRes shares on 4 April 2018, the last trading day prior to execution of the SID, this merger ratio implies an offer price of 3.02 cents per Atlas share, and a premium of 59%.
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