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[November 2000]
Rio Tinto acquires 49.82 per cent of Ashton and announces increase in its Offer
Further to Rio Tinto's previous announcement, stating:
"Following the receipt of all regulatory approvals, Rio Tinto has declared its Offer for Ashton Mining Limited unconditional."
The following announcement has been made:
Rio Tinto has acquired a relevant interest in 161,379,101 Ashton shares, representing approximately 49.82 per cent of the company. This follows receipt of acceptances from Malaysia Mining Corporation Berhad in respect of its entire 49.72 per cent holding.
Following these acceptances, Rio Tinto intends, as soon as practicable, to take the necessary steps to increase its Offer to the following:(a) $2.20 cash for each Ashton share; Rio Tinto notes that Ashton has already announced in relation to the De Beers bid that it intends to pay a special fully franked dividend of $0.20 per share. Rio Tinto would support a similar dividend in respect of Rio Tinto's Offer. If Ashton declares such a dividend, Rio Tinto will give Ashton shareholders the right to elect to receive the dividend. In that case, the amount of that dividend will be deducted from the Offer consideration.
(b) 1 Rio Tinto Limited share for every 14 Ashton shares, or 1 Rio Tinto plc share for every 14 Ashton shares; or
(b) 1 Rio Tinto Limited share for every 14 Ashton shares, or 1 Rio Tinto plc share for every 14 Ashton shares; or
(c) any combination of the above.
Rio Tinto's chief executive, Mr Leigh Clifford, said that Rio Tinto was pleased to have secured Malaysia Mining Corporation's interest in Ashton.
"This will ensure the continuation of the successful direct marketing arrangements and strengthen the future prospects of the Argyle diamond mine," he said.
Rio Tinto's Offer is unconditional and open for acceptance.
Rio Tinto will send payment to Ashton shareholders within five business days of a valid acceptance, in accordance with the terms of the Offer.
Rio Tinto has extended the Offer initially to 13 November 2000 to allow time to effect the increase. This will then automatically extend the Offer period by a further fourteen days from the date of the formal variation.
www.riotinto.com
ENDS