ArcelorMittal and Baffinland Iron Mines Corporation on Sunday, said they have sent a detailed version of the USD 431 million takeover bid by the world's largest steel producer to Baffinland security holders.
Baffinland securityholders were mailed ArcelorMittal's offer and take-over bid circular and Baffinland's directors' circular in this connection, both the companies said in a joint statement today.
Under the offer, holders of common shares in Baffinland would receive Canadian dollar 1.10 in cash per share and holders of 2007 warrants would receive Canadian dollar 0.10 in cash per warrant.
"The board of directors of Baffinland has approved the offer and unanimously recommends that Baffinland's shareholders and the holders of 2007 warrants tender their common shares and 2007 warrants to the offer," the statement added.
Meanwhile, Baffinland's largest shareholder, Resource Capital Funds and directors and officers of Baffinland have agreed to tender all their common shares and 2007 warrants amounting to about 25 per cent of the outstanding common shares to ArcelorMittal's offer.
Earlier this month, ArcelorMittal, had reached an agreement to buy Baffinland, a company which specialises in the development of iron ore sites along the Mary River in northern Canada.
The deal is likely to boost ArcelorMittal's self-sufficiency in iron ore and lessen its dependence on the three main producers, BHP Billiton, Vale abd Rio Tinto.
ArcelorMittal's production of iron ore is to set rise by 10 million tonnes this year to 50 million tonnes.