Hong Kong based commodities trader Noble Group has made a rival bid for Territory Resources, an iron ore mining company. Territory Resources is currently under a takeover bid from Exxaro Resources, a South African coal mining company which is offering them 46 cents per share.
Exxaro launched the offer last month saying that it was part of the company’s plan to buy several iron ore assets and eventually produce 10 million tonnes a year.
Noble Group is currently the largest stock holder in Territory Resources with a 32.01% stake. It has increased this from the 29.01% stake it held when Exxaro Resources made its first bid for the company. The new bid by Noble Group offers 50 cents a share and is calculated at $132 million. The financial advisory of the deal is being handled in house while Investec is the broker for the offer.
In a company statement Territory Resources said that Noble had demonstrated unwavering support to the company. The support exhibited most notably through funding facilities and marketing capabilities along with customer and suppliers having the knowledge that Territory was backed by a leading global supply chain management company.
The Territory Resources shares last traded at 47 cents. There has been no reaction to the counter bid from Exxaro Resources as yet. It remains to be seen if the bid will be challenged.