Hindalco shares gained over 4 per cent on Tuesday after Aditya Birla Minerals (ABML) announced that Metals X has announced its intension to increase the consideration offered under its off-market takeover offer to acquire all the shares in ABML by increasing the scrip consideratin to 1 Metal X shares for every 4.5 ABML shares and adding a cash component of $0.08 per ABML share. Aditya Birla Minerals is an Australian based mining company.
Hindaco holds 51 per cent stake in ABML. The increased offer equates to $0.329 per ABML shares based on the closing price of Metals X shares on April 20. This compares to an ABML share price of $0.250 at the close of trading on April 20.
If the formal variation is made, any ABML shareholders who have already accepted the offer will receive the increased consideration as per the increased offer.
As announed by Metals X, the offer was due to close on April 28, however, Metals X has announced its intention to extend the offer period to close on July 29, 2016. The extension is intended to allow Hindalco sufficient time to obtain the RBI approval and to ensure ABML shareholders have time to consider the increased offer.
Later, the scrip closed 4.93 per cent up at Rs 103.15.
