Aluminium maker Hindalco today said Reserve Bank of India (RBI) has approved Australian miner Metal X's improved takeover offer for its subsidiary Aditya Birla Minerals Ltd (ABML).
"The company received RBI's approval and has accepted the offer," it said in a regulatory filing.
On April 26, the flagship firm of the Aditya Birla Group had said that Metals X Ltd has proposed an improved takeover bid for its Australian subsidiary.
"Further, the company (ABML) has informed that Hindalco has communicated to ABML its intention to accept the aforesaid offer subject to receiving the approval of the RBI and no bona fide superior proposal being announced by a third party within 5 business days of Metals X announcing its intention to make the aforesaid Offer," Hindalco had said in a filing then.
Metal X offered 1 fully paid ordinary share in Metals X Ltd for 4.5 ABML shares and AUD (Australian dollar) 0.08 in cash for every ABML share held. The offer was conditional upon Hindalco's acceptance and confirmation that it has obtained the requisite approval from the RBI.
Metals X CEO and Managing Director Peter Cook had then said: "Aditya Birla is an underperforming company and its shareholders have seen substantial loss of wealth over the last few years."
Nifty mine is an underperforming asset and continues to be a challenging operation, which with appropriate stewardship is capable of being a good mine, he added.
Metals X said that its underground mining experience, technical capability, financial capacity and experience in operating Western Australian mines makes it almost uniquely placed to take on the Nifty mine challenge.
Metals X operates three key divisions -- gold, tin and nickel as well as other exploration activities. It aims to expand its operating and commodity diversification strategy by adding copper as a new operating division.
