NMDC to make formal bid for 50 per cent in Australia's Legacy Iron Ore soon
13 September 2011
National Mineral Development Corporation Ltd (NMDC) is expected to submit a formal bid for acquisition of a 50-per cent stake in Australian exploration company Legacy Iron Ore.
The acquisition, expected to cost around $40 million, will give NMDC rights to Legacy's vast rock phosphate and iron ore deposits.
Legacy Iron Ore had, in August, granted NMDC an extension of time to finalise the necessary internal approvals to enable the state-owned miner to make a formal offer for Legacy.
If the deal goes through, it will be NMDC's first overseas acquisition.
Legacy had, on 24 August, announced a two-day halt to trading of its shares on Australian Securities Exchange (ASX), anticipating a bid from NMDC. However, the bid did not come through as expected and is now likely to be made in the second half of September.
"It is anticipated that the approved formal binding offer will now be tabled to the Legacy board by mid-September," the Australian miner had said in its filing with ASX on 26 August.