Hunan Valin Iron and Steel Group Company Valin will acquire a 16.5% stake in Australia's Fortescue Metals Group through a combination of new equity and a sell-down by an existing shareholder. The total outlay is A$1.24 billion $798 million.
Valin will buy 225 million new shares of Fortescue at a price of A$2.48 per share, providing A$558 million of funding for the iron ore company. It will also purchase 275 million shares from investment firm Harbinger Capital at the same price. Harbinger currently owns around 16% of Fortescue, but its stake will drop to less than half this level after the sell-down.
Fortescue last traded at A$2.83 a share on February 20 before...
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