Australian Flinders Mines Approves Takeover by MMK

Shareholders of Australia’s Flinders Mines iron ore company approved a deal to sell 100 percent of the company to Russian steel giant MMK for $537 million, the Australian company said on Friday.

“Flinders Mines Limited shareholders have voted in favor of the proposed scheme under which Magnitogorsk Iron and Steel Works will acquire all of the outstanding Flinders ordinary shares for A$0.30 cash per share,” Flinders Mines said in a statement.

The deal was approved by 90.29 percent of the company’s shareholders. Flinders will now apply for approval of the takeover by the Federal Court of Australia.

MMK made the $537 million takeover offer to Flinders Mines in November 2011.

The steel giant plans to take a loan up to $600 million, part of which might be used to finance the deal, MMK press officer told Prime news agency last week.

 

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