Rio Tinto Increases its Offer for Riversdale Mining

14 March 2011 (Last Updated March 14th, 2011 18:30)

Rio Tinto subsidiary Rio Tinto Jersey Holdings (RTJ) has made a new offer to increase its takeover bid for Riversdale Mining with further changes. According to the new offer, RTJ has increased the offer price to $16.50 a share, if it obtains an interest in over 50% of Riversdale shares

Rio Tinto subsidiary Rio Tinto Jersey Holdings (RTJ) has made a new offer to increase its takeover bid for Riversdale Mining with further changes.

According to the new offer, RTJ has increased the offer price to $16.50 a share, if it obtains an interest in over 50% of Riversdale shares by 23 March 2011.

RTJ will not increase the offer price beyond $16.50 in the absence of a competing proposal for Riversdale.

Once the bid becomes unconditional, RTJ will pay the purchase consideration within five business days of the bid becoming unconditional and after acceptances are received.

Rio Tinto Energy chief executive Doug Ritchie said the increase in the offer price from $16.00 to $16.50 gives Riversdale shareholders an attractive premium.