Singapore businessman Richard Magides has lost a Federal Court challenge to Rio Tinto’s takeover of Energy Resources of Australia (ERA), clearing the way for the mining giant to acquire the remaining shares in the company and potentially end any future development of the Jabiluka uranium deposit.
Mr Magides, through Zentree Investments, led a group of more than 120 dissident shareholders who opposed Rio’s 0.2c-a-share offer for the final 2 per cent of ERA, arguing the company was worth about 0.3c a share.
Zentree’s lawyers told the court Mr Magides had spent more than $60 million acquiring ERA shares since 2011 and argued Rio had overestimated rehabilitation liabilities while underestimating the value of the Jabiluka deposit.
However, Justice Brigitte Markovic rejected the case, ruling Rio had offered fair value for ERA shares.
Mr Magides could still seek to appeal the decision, but ERA indicated it expects Rio to move quickly to issue compulsory acquisition notices to remaining shareholders.
The ruling effectively ends a lengthy battle over the future of ERA, owner of the former Ranger uranium mine and the nearby Jabiluka deposit in the Northern Territory. Rio is expected to assume full responsibility for rehabilitating the sites, a task ERA estimates could cost well in excess of $2.3 billion.
The decision also strengthens the likelihood that Jabiluka, one of Australia’s largest undeveloped uranium deposits containing an estimated 137,000 tonnes of uranium, will never be mined after its licence was cancelled by the Northern Territory government in 2024 with the support of Prime Minister Anthony Albanese.
Source: The Australian.
.){kind=link}