Energy Resources of Australia Ltd. Class A (AU:ERA) has released an update.
Energy Resources of Australia Limited (ERA) has announced that its $880 million renounceable entitlement offer will not face proceedings from the Panel despite concerns by applicants about the potential increase in Rio Tinto’s control over ERA. Rio Tinto, holding 86.3% of ERA, could see its stake grow to 99.2468% if no other shareholders participate, potentially leading to a compulsory acquisition of remaining shares. However, the Panel supported ERA’s Independent Board Committee’s handling of the offer, ensuring no further action will be taken.
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