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[July 2000]
Rio Tinto lodges Bidder's Statement for North Ltd
Rio Tinto Limited announced today that it had lodged its Bidder's Statement for North Limited with the Australian Securities and Investments Commission, and served copies of the Bidder's Statement on North and Australian Stock Exchange.
Rio Tinto is making a cash offer of A$3.80 per share for all the issued shares of North. The offer values North at A$2.80 billion compared with its value the day before the offer was announced of A$2.16 billion.
The offer represents a premium of approximately:
30% to North's closing price on the day before the offer was announced; 35% to the weighted average share price of North over the three months prior to the announcement of the offer.
Rio Tinto purchased a 14.5% holding in North from a range of institutions just prior to the announcement of the offer at A$3.80 per share. Rio Tinto is now the largest shareholder in North.
Mr Leigh Clifford, Chief Executive of Rio Tinto, said, "Through the added scale and potential synergies that it offers, this acquisition has the potential to underpin the global competitiveness of Australia's iron-ore industry for the future," he said.
"The cash offer is straightforward and is being made at a full and fair price. We are pleased with the response received so far regarding the offer."
"The offer represents an opportunity for North shareholders to realise a significant cash premium to the market price for their shares before the announcement of this offer," Mr Clifford said.
Rio Tinto expects to dispatch the Bidder's Statement to North shareholders on or around 13 July 2000.
ENDS