Aluminium maker Hindalco has received Reserve Bank of India's approval for an improved takeover offer for its Australia-listed subsidiary Aditya Birla Minerals Ltd from Australian miner Metals X.
“The company received Reserve Bank of India's approval and has accepted the offer,” Hindalco said in an Exchange filing.
According to the improved offer, Metals X will acquire 4.5 ABML shares in exchange for one fully paid ordinary share of Metals X and pay A$0.08 in cash for every ABML share held. Following the deal, Metals X stake in ABML will increase to 80.8 percent from its current 29.8 percent.
Hindalco stands to gain an estimated A$70 million (Rs 353 crore) from the deal, based on the current share price of Metals X (A$1.6075).
ABML is a copper mining company based in Perth, Western Australia. The acquisition gives Metals X control of the Nifty copper mine which currently supplies raw material required for Hindalco's Dahej copper smelter.
Metals X and ABML have been involved in a takeover battle for nearly a year. This is the Australian miner's second takeover bid for ABML. Earlier, Metals X offered one share for every five of ABML shares before sweetening its offer on April 26.
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