African Iron has been advised by Exxaro Resources that African Iron’s largest shareholder, Cape Lambert Resources, has formally accepted Exxaro’s takeover offer for shares equivalent to 19.99% of African Iron.

Exxaro last week announced a cash offer for all of the African Iron shares and listed options, which has been recommended by the African Iron board in the absence of a superior proposal. Cape Lambert, African Iron’s largest shareholder, entered into a pre-bid acceptance agreement with Exxaro for 19.99% of the listed shares in African Iron.

Acceptance by Cape Lambert of Exxaro’s takeover offer now puts Exxaro in a strong position to achieve the acceptances necessary to satisfy the 50% minimum acceptance condition that the takeover offer is subject to.

All African Iron directors have also declared their intention to accept Exxaro’s takeover offer by this Thursday, with respect to the African Iron shares and listed options owned or controlled by them, in the absence of a superior proposal.