Paving the way for coal mining company Riversdale’s eventual acquisition by mining giant Rio Tinto, the entire board of Riversdale has approved Rio Tinto’s $3.9 billion (£2.4 billion) takeover offer.
Indian steel giant Tata Steel holds a 24.2 percent stake in Riversdale and its board representative backed the deal. No better bid offers have been received for Riversdale, the company later said in a statement.
The Sydney based company owns a large coking coal mine in Mozambique in Africa. The Tata steel representative NK Misra later confirmed that he has voted in favour of the deal as a member of the Riversdale board. It does not indicate Tata Steel – Riversdale’s biggest shareholder, endorses the offer. He had abstained from voting on an earlier Rio bid.
Another Indian consortium led by ICVL will announce their decision of making a counter-offer on January 27 for Riversdale.