Xstrata has gained support for its $1-billion takeover of Eland Platinum Holdings from the South African company’s board, Eland said on Wednesday.
”The board is of the unanimous opinion that the terms and conditions of the offer are fair and reasonable to Eland shareholders,” the Johannesburg-based company said in a statement to the JSE.
The board recommends shareholders accept the R105-a-share offer from Anglo-Swiss Xstrata in a vote scheduled for October 5, Eland said. The board had confirmed receiving the offer from Xstrata, a Swiss mining company, last month.
Eland was established in 2005 and boasts of complying with a government requirement that companies operating in the country must have significant black ownership and management to qualify for new mining rights.
Eland’s chief asset is a 65% interest in Eland Platinum Mines, which owns the Elandsfontein Platinum Project that was formerly part of Anglo Platinum, the world’s largest platinum producer. — Sapa-AP