Rio Tinto Group (ASX:RIO) increased its stake in its unit, Energy Resources of Australia (ASX:ERA), to over 98% after participating in the latter's recently completed entitlement offer and shortfall bookbuild to raise AU$766.5 million, the miner said in a statement Tuesday.
In August, Energy Resources of Australia launched a 19.87-for-1 non-underwritten pro-rata renounceable entitlement offer to raise up to AU$880 million, an earlier filing with the Australian bourse showed. Rio Tinto committed to subscribe for about AU$760 million.
The mining and metals giant plans to compulsorily acquire the remaining shares in Energy Resources of Australia that it does not already own at AU$0.002 per share, the same price as the entitlement offer.
After the compulsory acquisition, Rio Tinto has no intention to invest in the mining or development of the Jabiluka uranium deposit in Northern Australia, it said.
Price (AUD): $116.23, Change: $+0.53, Percent Change: +0.46%
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.