Fortescue (ASX:FMG) has reached the 90% threshold required to move to compulsory acquisition of junior iron ore explorer Red Hawk Mining (ASX:RHK).
It has been a fairly fast moving takeover, with the $254 million deal only announced in late January.
The offer price was increased in early February to $1.20 per share, from $1.05 per share, after Fortescue reached a 75% interest.
Fortescue says that it will now exercise its right to compulsorily acquire the remaining Red Hawk Shares after obtaining a relevant interest of more than 90%.
The offer is due to close on 3 March, but shareholders can opt to receive their payout earlier if they accept the deal before then.
Once the deal has closed, the remaining consideration due for the outstanding shares compulsorily acquired will be paid to Red Hawk and investors will have to claim their share from Red Hawk.
Red Hawk, which prior to the takeover offer had a market capitalisation of around $164 million, owns the Blacksmith Iron Ore Project in the Pilbara region of Western Australia.
The project, which hosts a resource of 243 million tonnes @ 59.3% iron, is located 30km west of Fortescue’s Solomon operations in the Western Hub.
Write to Angela East at Mining.com.au
Images: Red Hawk
