African Iron's Major Shareholder Accepts Exxaro's Offer

South African miner Exxaro is on its move to takeover African Iron (AKI) after the ASX-listed company's major shareholder Cape Lambert Resources (CFE) accepted the offer of the bidder. The board of African Iron recommended its shareholders last week to accept the offer in the absence of a better proposal.

Cape Lambert has agreed to sell its 19.99 per cent stake in African Iron for Exxaro's 51 cents per share offer. The acquisition would leave Cape Lambert a 5.3 per cent stake of the company.

The South African proposed a $338m bid to takeover the miner for 51 cents per share and agreed to raise it to 57 cents per share if it would get a hold of at least 75 per cent of African Iron. Under the same condition, it will raise its 31 cents per African Iron option offer to 37 cents.

After its success to acquire the shares of African Iron's major shareholder, it now has to win over its remaining stockholders including Equatorial Resources (EQX), which owns 19.9 per cent stake of the company.

The offer of Exxaro will remain open until February 14.