BHP Billiton (ASX:BHP) has mounted a takeover bid for United Minerals (ASX:UMC), offering $204 million for the company.
The $1.30 per share offer represents a roughly 30% premium on UMC’s weighted average trading price in the week leading up to the announcement.
BHP told UMC its offer is final barring a competing bid. UMC CEO Matthew Hogan advised shareholders to accept the offer.
“The BHP Billiton offer is an attractive proposal. It provides all UMC shareholders with a substantial premium and the certainty of a cash prize,” Hogan said.
UMC’s main asset is the Railware iron ore deposit in Pilbara, Western Australia.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.