Fortescue (ASX:FMG) has acquired 78% of Red Hawk Mining (ASX:RHK) through its subsidiary FMG Pilbara in an off-market bid.
Earlier this year, Fortescue, which has a market capitalisation of $56.31 billion, proposed to acquire all of Red Hawk’s shares for $1.05 per share — representing a 28% increase to the last closing price of $0.82 per share.
The offer implies Red Hawk has a fully diluted equity value of $254 million.
As a result of acquiring more than 75% of Red Hawk’s shares, Fortescue will increase the offer price to $1.20 per share to acquire the remaining shares. The increased offer price represents a 46% premium to the closing price.
Red Hawk is continuing to unanimously recommend shareholders to accept the offer at the increased price. Any shareholders that have already accepted the offer will automatically receive the increased offer price.
The offer is scheduled to close at 7pm AEDT on 3 March 2025, unless otherwise extended or withdrawn.
Red Hawk’s board had obtained an Independent Expert’s Report from BDO Corporate Finance (WA), which had concluded the offer to be fair and reasonable to Red Hawk shareholders.
Red Hawk Mining is an iron ore-focused explorer that owns the Blacksmith Project in the Pilbara region of Western Australia. It owns the Blacksmith Iron Ore Project, which is an undeveloped iron ore project located 30km west of Fortescue’s Solomon operations in the Western Hub. The total Blacksmith Mineral Resource estimate is 243 million tonnes at 59.3% Fe grade.
Fortescue is a global metal mining company focused on iron ore.
Write to Aaliyah Rogan at Mining.com.au
Images: Fortescue
