ArcelorMittal, Nunavut and Baffinland Complete Plan of Arrangement
03/28/2011 - ArcelorMittal, Nunavut Iron Ore Acquisition Inc. and Baffinland Iron Mines Corp. have announced the completion of the court-approved plan of arrangement in which Acquireco acquired all outstanding Baffinland securities not already owned by it.
ArcelorMittal, Nunavut Iron Ore Acquisition Inc. and Baffinland Iron Mines Corp. have announced the completion by Baffinland and 1843208 Ontario Inc. (Acquireco), a corporation owned as to 70% by ArcelorMittal and as to 30% by Iron Ore Holdings, LP, of the court-approved plan of arrangement in which Acquireco acquired all outstanding Baffinland securities not already owned by it.
The Arrangement was approved by shareholders of Baffinland on March 22, 2011.
Under terms of the Arrangement, former Baffinland security holders (other than dissenting shareholders) will receive cash consideration of C$1.50 per common share; C$0.80 per common share purchase warrant issued pursuant to a warrant indenture dated 10 December 2009; and C$0.10 per common share purchase warrant issued pursuant to a warrant indenture dated 31 January 2007.
Acquireco intends to promptly fund Computershare Investor Services Inc. to ensure that registered security holders who have deposited certificates representing securities along with a duly completed and executed letter of transmittal are sent payment within four business days in accordance with their instructions as set out in letter of transmittal.
Dissenting shareholders will be entitled to receive “fair value” for the common shares formerly held by them, as determined in accordance with the Business Corporations Act (Ontario).
Baffinland will immediately proceed to delist its securities from the Toronto Stock Exchange and to cause Baffinland to cease to be a reporting issuer under the securities laws of each province and territory of Canada.
Nunavut Iron was incorporated under the laws of Canada on August 27, 2010 and is wholly owned by Iron Ore Holdings, LP. Iron Ore Holdings, LP, a limited partnership formed under the laws of Delaware, is owned by Bruce Walter, the Chairman of Nunavut Iron, Jowdat Waheed, the President and CEO of Nunavut Iron, and funds managed by The Energy & Minerals Group. The Energy & Minerals Group is a private investment firm with a family of funds with over US$2 billion under management that invest in the energy and minerals sectors.
Baffinland is a junior mining company that is focused on its wholly-owned Mary River iron ore deposits located on Baffin Island, Nunavut Territory, Canada.
ArcelorMittal is the world's largest steel company, with operations in more than 60 countries. The company leads major global steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. With an industrial presence in over 20 countries spanning four continents, the company covers all key steel markets, from emerging to mature.
Through its core values of Sustainability, Quality and Leadership, ArcelorMittal commits to operating in a responsible way with respect to the health, safety and wellbeing of its employees, contractors and the communities in which it operates. It is also committed to the sustainable management of the environment and of finite resources.
In 2010, ArcelorMittal had revenues of $78.0 billion and crude steel production of 90.6 million tonnes, representing approximately 8% of world steel output.
