Passport Capital sells 2.7 per cent stake in Riversdale Mining

With no competing bids in the horizon, hedge fund Passport Capital has sold part of its stake in Australia's Riversdale Mining, the Mozambique-focused coal miner that is currently the target of a takeover by mining giant Rio Tinto.

California-based hedge fund Passport Capital holding nearly 16 per cent of Riversdale, said it had sold 1.6 per cent stake in Riversdale, bringing its holding down to 12.97 per cent. The sale comes after Passport had sold 1.1 per cent stake last week

Passport Capital has raised around $100 million by selling a total of 2.7 per cent of Riversdale since last week.

Rio Tinto, the world's third-largest mining company, had in December launched an A$3.9 billion ($3.9 billion) bid for Riversdale in order to gain control of 13 billion tones of coking and thermal coal in Mozambique. (See: Rio Tinto launches $3.9 billion bid for Riversdale Mining)

All the directors of Riversdale and Passport, which is among one of the investors in the miner, agreed to tender their combined 14.97-per cent interest to Rio Tinto's offer, of which, Passport has pre-committed 7.9 per cent.

Other major stake holders in Riversdale are Tata Steel, which holds a 24.21-per cent stake as well as a 35-per cent interest in Riversdale's Benga coking coal project and Brazilian steelmaker Companhia Siderurgica Nacional (CSN) with 16.29-per cent