State-owned mining company NMDC may spend nearly AUD 12.1 million to subscribe a rights issue planned by its Australian arm Legacy Iron Ore. Legacy reportedly is planning to raise AUD 25 million by way of rights issue and the Indian miner -NMDC- as majority shareholder is expected to acquire shares under the 'entitlement offer' equivalent to its 48.8% stake. However, NMDC's participation under the entitlement offer is subject to approval from the Foreign Investment Review Board (FIRB).
The Australian mineral and metals explorer plans to issue 'a 3 for 1 pro rata non-renounceable entitlement offer' to its shareholders. Under the entitlement offer each shareholder will be offered an opportunity to purchase three new shares for one existing Legacy Iron share held by them as on July 22. The offer price has been fixed at 1.4 cents per new share.
NMDC acquired 48.8% state in Legacy Iron in 2011. It is the first overseas acquisition done by the Indian miner.
NMDC is a state-controlled mineral producer of the Government of India. It is fully owned by the Government of India and is under administrative control of the Ministry of Steel.
