The board of Australian iron ore junior Flinders Mines Ltd. on May 9 recommended that shareholdersaccept an improved takeover offer by ToddCorp. Ltd. unit TIO (NZ)Ltd. of 2.5 Australian cents per share — 92% over the New Zealand-basedbidder's initial cash offer.
The all-cash offer, which values Flinders at A$73.8 million,represented a "significant premium" to Flinders' closing price beforethe initial offer March17 and a 225% premium to the stock's 60-day average price prior to March 17.
According to the board's statement, TIO's offer "providescertainty and prompt payment for Flinders shareholders," and is likely to bethe best and final offer from the bidder.
"The directors of Flinders unanimouslyrecommend that Flinders shareholders accept the improved offer," the statementread.
The board's acceptance comes justweeks after it urged shareholdersto rebuff TIO's initial offer, saying the 1.3 cents per share bid price significantlyundervalued Flinders' true value.
Flinders has interests in five early to midstage iron ore projectsin Australia, including the Pilbaraproperty, which has iron ore resources of 1.04 billion tonnes at an average gradeof 55.59% iron ore, according to data from SNL Metals & Mining.