Nunavut Iron Ore Acquisition Inc. has again amended its bid for
control of Baffinland Iron Mines Corp. (BIM.T), this time
sweetening its offer of C$1.45 in cash for each share with an
exchange right to receive Baffinland warrants.
Nunavut Iron's amended partial bid offers "continued
participation in the substantial value to be created with the
development of the Mary River project," it said.
Baffinland is developing the project, which is in Nunavut in
Canada's north.
The Nunavut Iron offer, which is for 60% of Baffinland, competes
with an offer for all of the shares from steel giant ArcelorMittal
(MT). That company's most recent offer is at C$1.40 a share.
Both bids value the junior miner's equity at well over C$500
million.
Baffinland closed Friday at C$1.42 in Toronto. Its stock was
trading at 56 Canadian cents in September, right before Nunavut
Iron launched the bidding process.
Nunavut Iron is owned by Iron Ore Holdings LP, a limited
partnership controlled by Bruce Walter, Jowdat Waheed and funds
managed by Energy Minerals Group. It already owns about 10% of
Baffinland.
Pursuant to its amended offer, Baffinland would distribute to
each shareholder 0.4 of a share-purchase warrant for each share
held. Each whole warrant, exercisable for three years, would
entitle the holder to buy another common share at a price equal to
the greater of C$1.40 and the price determined in accordance with
the rules of the Toronto Stock Exchange.
The number of warrants shareholders would get will vary
depending upon the number of shares tendered to the offer, it
noted. If the minimum tender condition isn't met, no exchange
rights will be issued.
Nunavut Iron's offer expires Jan. 25. Other conditions of its
offer are unchanged.
-By Carolyn King, Dow Jones Newswires; 416-306-2100;
carolyn.m.king@dowjones.com