Todd Corp to Exit Red Hawk Mining as Fortescue Proposes Takeover

Highlights:

• Todd Corp to exit its 60.7% stake in Red Hawk Mining Ltd (NZX: RHK) following a AU$254 million takeover bid from Fortescue Minerals.
• Todd Corp stands to receive NZ$170.6 million at an offer price of AU$1.20 per share, pending 75% shareholder approval.
• The deal marks another retreat by Todd Corp from an overseas venture, while Fortescue signals confidence in Red Hawk’s future prospects.

Fortescue Bids AU$254 million for Red Hawk Mining

Todd Corporation is preparing to divest its stake in Red Hawk Mining Ltd (ASX: RHK) following a takeover bid by Fortescue Minerals that values the company at AU$254 million (NZ$281 million). The acquisition offer comes as Red Hawk, formerly known as Flinders Mines, remains an untapped iron ore development prospect.

Todd Corp to Secure NZ$170.6 million from Stake Sale

With a 60.7% holding in Red Hawk Mining, Todd Corp stands to receive approximately NZ$170.6 million at the offer price of AU$1.20 per share. The deal is contingent on securing approval from more than 75% of shareholders. If greenlit, this exit will mark another retreat by Todd from an international venture that failed to meet expectations.

Market Reaction and Investor Sentiment

At the time of writing, market sentiment around the deal remains positive, with investors weighing the impact of the proposed takeover. Fortescue's bid signals confidence in Red Hawk Mining’s future potential, despite past challenges faced by the company.

If approved, the transaction will bring closure to Todd Corp’s involvement in yet another overseas mining venture, reflecting its shifting strategic priorities.

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