ABC News Jan 24--Rio Tinto's proposed $3.9 billion takeover of mid-tier coal miner Riversdale has been given the go-ahead by the board of the Africa-focused coal miner.
The all-cash offer values Riversdale at $16 per share, lower than the company's most recent trading price of $16.47 as at 10:30am （AEDT）.
"The directors consider that the offer, by crystallising value now for the company's shareholders' investment in Riversdale, provides an attractive alternative to holding their Riversdale shares," Riversdale executive chairman Michael O'Keefe wrote in a statement.
"[That is] until the major assets of Riversdale, the Benga project and the Zambeze project, both of which are located in Mozambique, come into full production."
Riversdale, which is favoured for its coking coal projects in Mozambique, says it is not aware of any other takeover offers in the works, even as an Indian consortium reportedly weighs up the prospect of making a counter bid.
"As of today, no superior proposal has been received by Riversdale and the company is not aware of any party having an intention to make such a proposal," Mr O'Keefe said.
One of Riversdale's biggest shareholders, Indian steel making firm Tata Steel, was seen as likely voting against the deal but today a representative on the Riversdale board backed the deal.
Tata Steel owns 24.2 per cent of Riversdale and is primarily interested in locking in coking coal supplies.
Rio Tinto's offer remains open until 18 February.
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