Iron ore billionaire Andrew ‘Twiggy’ Forrest is challenging the validity of a $390 billion takeover bid by fellow billionaire Gina Rinehart for Atlas Iron, in the latest twist in an ongoing battle for the ASX-listed miner.
According to multiple reports, the federal Takeovers Panel on Tuesday received notice from Fortescue subsidiary NCZ Investments, arguing a 4.2c-per-share bid for Atlas from Rinehart’s business, Hancock Prospecting, contained a number of misleading statements.
NCZ is reportedly telling the Takeovers Panel the bid, which Hancock made through subsidiary Redstone, contains “misleading statements and material omissions regarding Redstone’s intentions in relation to Atlas’s business, assets and employees and Redstone’s ability to achieve those intentions.”
NCZ holds a 15% share of Atlas Iron, while Redstone has a 19.9% stake.
Redstone’s offer, made on June 18, blew the existing $280 million takeover from Mineral Resources – which has since quit the takeover race – out of the water. As recently as the start of June, Mineral Resources looked to be the only suitor for Atlas.
But after Redstone’s offer, Atlas’ share price continued to trade above even that valuation, suggesting the market anticipated Forrest might make a move to challenge the bid.
Atlas holds iron ore deposits, but also has port capacity at Port Hedland, another extremely valuable resource.
The state government is yet to make a clear ruling on whether Atlas’ berth access at Port Hedland’s Utah Point would be forwarded to a buyer, however, and to berth space which has been earmarked for development near Hancock’s Roy Hill berths at Port Hedland.
Under the government’s current policy is for that port space to be reserved for junior miners, which Fortescue and Hancock are not.
According to AFR, Fortescue founder Twiggy Forrest and Rinehart have a “frosty” relationship and were always unlikely to team up on a bid for Atlas.