Small cap iron ore producer Atlas Iron Limited (ASX: AGO) has been in the takeover spotlight of late after Gina Rinehart’s Hancock Prospecting made a bid to acquire the $432 million market cap company.
Redstone Corporation Ltd – a wholly-owned subsidiary of Hancock Prospecting – obtained 90% voting power in Atlas on October 12 with the intention to initiate the compulsory acquisition of all remaining Atlas shares.
Atlas today released its September 2018 quarterly activities report with $51 million cash on hand at September 30, down from $57 million at June 30 – impacted mainly by lithium shipment timings and transaction costs of the Hancock takeover.
Atlas was a takeover target for some time before the successful Hancock deal, with Mineral Resources Limited (ASX: MIN) offering a $280 million acquisition price in April.
Fortescue Metals Group Limited (ASX: FMG) was part of the takeover tussle briefly back in June but later reduced its stake in Atlas down to 11% from close to 20%.
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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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