London Mining bondholders hire PwC to conduct talks with potential buyers; JSW Steel, Frank Timis make offers for debt, Glencore not interested
Holders of London Mining bonds have hired the accountancy firm PwC to conduct talks with potential buyers of the listed UK-based iron ore miner, The Sunday Times reported. The newspaper said the bondholders are led by Standard Chartered, but did not cite a source for the claim.
London Mining on Friday, 10 October announced that takeover discussions had ended and requested a suspension in trading in its shares, the item noted. It is expected that the company will tomorrow announce that it has entered administration, according to the report.
Jindal Group subsidiary JSW Steel has made an offer for London Mining’s debt substantially below face value, the item said, adding that the mining entrepreneur Frank Timis is also believed to have made an offer via his family investment vehicle, Timis Corporation.
Glencore, an FTSE-100 commodities trading group, was thinking about makimg a bid for control of London Mining but said this weekend that it was no longer planning to make an offer, the article continued.
A Reuters report on Friday, 10 October cited a source with direct knowledge of the negotiations who said on Friday that JSW Steel was very close to a deal to acquire London Mining.
The Reuters report cited two other sources with knowledge of the situation who confirmed that London Mining was within days of a deal, but did not identify JSW.
An article in The Times on 12 October cited unspecified reports that JSW Steel was to acquire London Mining’s Marampa mine. London Mining said in its announcement on Friday that it was in discussions with a potential buyer for Marampa the item noted.
Source Sunday Times, Reuters, The Times