Exxaro moves on Territory Resources
South African coal giant Exxaro has made a $123 million bid for Territory Resources, out-bidding Hong Kong based Noble Group for control of the Northern Territory based mining iron ore mining group.
Exxaro has offered 46 cents a share in an attempt to trump the previously agreed upon debt-for-equity deal stuck between Noble Group and Territory Resources.
However, discussions ceased immediately with Noble Group after Exxaro made its official bid, resulting in a 59% spike to Territory Resources listing value after it was announced the majority of the company’s directors supported the move.
The move has caused speculation that Exxaro is using the purchasing of Territory Resources to establish a stronger foothold on the Australian market, given that Territory Resources has a 20% stake in Blackwood Corporation, which holds a number of tenements in major coal producing areas in Queensland.
The bid caused an immediate 5% decline in Exxaro’s local South African listing value, before recouping losses before the end of the day’s trading.