Riversdale Mining Ltd’s
(ASX:RIV) directors have unanimously backed Rio Tinto Ltd’s
(ASX:RIO) $3.9 billion takeover offer, in the absence of a superior proposal.
The all cash off-market offer values Riversdale at $16 per share, 1.9 per cent lower than the company’s last traded price of $16.31.
Riversdale’s executive chairman Michael O’Keefe says the directors consider the offer an attractive alternative until the company’s major projects, located in Mozambique, come into full production.
Mr O’Keefe added that the projects will involve significant capital expenditure and will be subject to a number of risks and uncertainties.
For the year ended 30 June 2010, Riversdale reported a net profit of $1.3 million.
