Atlas Iron Ltd’s
(ASX:AGO) bid for iron ore developer FerrAus Ltd
(ASX:FRS) has been given a boost with rival suitor Wah Nam International Holdings Ltd walking away.
Hong Kong-based investment company Wah Nam recently acquired the majority stake in Brockman Resources Ltd
(ASX:BRM), and, some analysts had tipped it would sweeten its bid for FerrAus to increase its footprint in Western Australia’s Pilbara region.
However,Wah Nam yesterday said it would let its scrip bid for FerrAus lapse, leaving Atlas as the sole bidder.
Under Atlas’ proposed two-step deal FerrAus would acquire Atlas' south-east Pilbara assets, after which Atlas would offer one of its shares for every four FerrAus shares to acquire the company.
Atlas Iron posted a net profit of $30.1 million in the six months to 31 December 2010.
