M.I.M. shareholders give Xstrata the nod

Shareholders of Australian-based miner M.I.M. Holdings have approved a A$4.9 billion cash-and-debt takeover offer from Anglo-Swiss rival, Xstrata.

The plan was recently okayed by 58.5% of voting shareholders and 89.1% of the total number of shares voted at a special meeting in Brisbane. The plan needed to pass by 50% and 75%, respectively.

M.I.M.’s board had already approved the deal. However, M.I.M.’s chief executive parted with the board denouncing the offer as too low. Gauci was joined in his resistance by Platinum Asset Management, which owns a 2.5% stake in M.I.M.

In early April, Xstrata tabled a plan to acquire all of M.I.M’s shares for A$1.72 apiece, a deal that valued the Aussie at A$3.44 billion. The offer represents a 38% premium over M.I.M.’s closing share price on Nov. 20, the day before the two announced they were in talks.

Also under the deal, Xstrata would assume around A$1.5 billion in M.I.M. debt.

The deal still needs the blessing of the Supreme Court of Queensland, which will be sought on June 12; it has already been given the thumbs up from the Australian Treasurer, the European Union and the Australian Consumer and Competition Commission.

If the deal goes through, cheques would be sent to M.I.M. shareholders on June 20.

Xstrata plans to finance a portion of the acquisition via an underwritten rights issue worth US$1.4 billion; the balance will be funded by bank debt.

Xstrata, the world’s fourth-largest coal exporter, has its eyes on M.I.M.’s Australian coal assets.

M.I.M., Australia’s fifth-largest exporter of coal, has 75% interests in each of the Oaky Creek, Newlands and Collinsville operations in central Queensland. It also produces coal at its Bowen Coke mine, and has two projects at the feasibility and prefeasibility stages: Rolleston and Wandoan, respectively. The Queensland government recently granted M.I.M. a mining lease at the Rolleston open-pit thermal coal mine.

M.I.M. also produces copper, gold, zinc, lead and silver at operations in Australia, the United Kingdom, Germany and Argentina. The company has a half-interest in the Bajo de la Alumbrera gold-copper operation in Argentina.

Xstrata has interests in 14 Australian and 14 South African coal businesses. The company’s zinc business comprises a mining and smelting operation in Spain and a zinc smelter in Germany. The company also owns chrome and vanadium operations in South Africa and Australia.

Xstrata is 40% owned by Glencore International.