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. Last Updated: 07/27/2016

Court OK's Sales to MMK

Flinders Mines, owner of the Pilbara Iron Ore Project in Western Australia, won initial court approval for its plan to sell itself to Magnitogorsk Iron & Steel for 553 million Australian dollars ($592 million).

Australian Federal Court Judge Paul Finn on Wednesday in Sydney approved the plan, pending a shareholder vote and a final hearing on April 3 in a federal court in Adelaide.

The acquisition will give MMK ownership of 917.3 million tons of iron ore resources, according to Flinders' estimates. MMK offered 30 cents a share for Flinders, a 93 percent premium over Flinders' one-month average share price prior to the Nov. 25 bid, Jackman said.

(Bloomberg)