EXX - Exxaro - Exxaro confirms no increase in offer for Territory Release Date: 23/06/2011 07:30:01 Code(s): EXX
EXX - Exxaro - Exxaro confirms no increase in offer for Territory
EXXARO RESOURCES LIMITED
Incorporated in the Republic of South Africa
(Registration Number: 2000/011076/06)
JSE share code: EXX
ISIN code: ZAE000084992
ADR code: EXXAY
EXXARO CONFIRMS NO INCREASE IN OFFER FOR TERRITORY
Exxaro Resources Limited (JSE: EXX, "Exxaro") confirms that the $0.46 per share
offered under the takeover bid for Territory Resources Limited (ASX:TTY,
"Territory") by its wholly-owned Australian subsidiary, Exxaro Australia Iron
Investments Pty Ltd, will not be increased and the offer period will not be
extended beyond the current closing date of midnight (Australian Western
Standard Time) on 4 July 2011.
Exxaro`s Executive General Manager of Business Growth, Ernst Venter, said that
after carefully considering all options, Exxaro had decided not to increase its
bid following an on market offer for Territory by Noble Group.
"Territory holds assets that have not been able to realise their full potential
under current debt and ownership arrangements. We felt that the addition of our
balance sheet, bulk commodity experience and in house iron ore beneficiation
expertise to the assets would have resulted in a significant uplift in the
operating value of the assets," said Mr Venter.
"However, Exxaro has a disciplined approach to growth and acquisitions, and the
company will not bid above what we see as fair value for the assets.
"Exxaro is focused on further diversifying and will continue to review a number
of other potential opportunities in both iron ore and Australia," said Mr
As the Exxaro offer is still subject to a number of conditions that Exxaro does
not intend to waive at this stage, it is likely that the Exxaro offer will lapse
on 4 July 2011. Following the lapsing of the Exxaro offer, any acceptances
lodged in the Exxaro offer, including the acceptances relating to DCM
DECOmetal`s holding in Territory (pursuant to the pre-bid acceptance agreement
between the parties), will lapse and those Territory shareholders will then be
free to deal with their Territory shares as they see fit.
Following the Territory Board`s recommendation of the Noble offer, Exxaro has
formally requested payment from Territory of the agreed break fee of
approximately $1,56 million, pursuant to the bid implementation agreement
between the parties.
For further information contact:
Executive GM: Business Growth
T:+27 12 307 4322 M:+27 83 6091313
GM: Corporate Finance and Treasury
T:+ 27 12 307 4145 M :+27 836091047
T: +61 8 9386 1233 M: +61 420 945 291
Richard Phillips / Jonathan Farrer
Greenhill Caliburn Pty Ltd
T: +61 3 9935 6806 / +61 3 9935 6809
23 June 2011
Sponsor to Exxaro
Deutsche Securities (SA) (Pty) Limited
Date: 23/06/2011 07:30:01 Supplied by www.sharenet.co.za
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