/ 29 April 2011

Rio Tinto plans to delist Riversdale

Resources group Rio Tinto said on Friday that it would seek to delist Riversdale following the end of its takeover bid.

Rio Tinto holds a relevant interest in more than 73% of Riversdale shares and has extended its AUS$4-billion offer to Friday next week.

The largest remaining shareholder in Riversdale is Tata Steel, which holds a 27,14% stake.

Tata Steel said earlier this week that it intended to remain invested in the company.

Riversdale has as its major assets coal projects in Mozambique and South Africa.

In South Africa, the company owns the Zululand Anthracite Colliery, which has an operating underground mine in the Zululand coalfield of northern KwaZulu-Natal.

Rio Tinto launched its offer for Riversdale in late March and in early April sweetened its offer by AU$0,50 to AUS$16,50 a share.

The group promised to sweeten the offer once it received 47% of the target’s shares.

Rio Tinto also announced that it had increased the number of directors on the Riversdale board to five. Riversdale has a nine-member board. — I-Net Bridge