Rio weighing options in ERA funding row

Diversified major Rio Tinto on Thursday said that it would ‘consider its options’ regarding the proposed A$476-million capital raise by uranium miner Energy Resources of Australia (ERA), after the Australian Takeovers Panel declared unacceptable circumstances.

ERA shareholder Zentree Investments in November made an application to the Takeovers Panel to halt a fully underwritten 6.13-for-1 pro-rata renounceable entitlement offer by ERA, after Rio, which holds a 69.4% interest in ERA, said that it would subscribe for some A$326-million worth of shares under the entitlement offer.