Fortescue signs iron dealadmin
IRON ore developer Fortescue Metals Group has signed a $536.01 million deal with a New York group after breaking off talks with Noble Group.
Leucadia National Corporation has agreed to pay $402.01 million for a placement of 26.4 million Fortescue shares, or nearly 10 per cent of the miner.
It will also invest a further $134.0 million under a loan note with a term of 13 years.
The deal is conditional on Fortescue raising the $2 billion of debt required to develop its iron ore mine in WA’s Pilbara region by the end of the year.
The “Leucadia investment will provide the requisite equity to enable completion of Fortescue’s project financing,” it said.
The deal came a day after talks with Hong Kong commodities trader Noble fell through.
Fortescue had been discussing equity and marketing arrangements with Noble which yesterday said it would not take a flagged $361.81 million equity stake in the company.
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