Three top executives of state-run miner National Mineral Development Corporation (NMDC), which is acquiring 50% stake in Legacy Iron Ore, have joined the Australian company's board.
Of the trio, Rana Som is chairman of NMDC, while Narendra Kumar Nanda and S Thiagarajan are directors of the PSU, a statement by Legacy said today. The appointments follow shareholders' approval at the recent extraordinary general meeting (EGM).
Meanwhile, according to a senior NMDC official, Som, who is reaching superannuation on December 31, may step down from Legacy's board after retirement.
Australia's Foreign Investment Review Board (FIRB) has cleared NMDC's proposal to acquire the stake in Legacy. NMDC will invest $18.9 million to acquire a 50% stake in the Perth-based company, which is active in exploring iron ore and gold deposits.
Legacy Managing Director Sharon Heng said she believes that the appointments will represent a significant turning point in Legacy's growth, and an ability to take the company to the next level in global resources industry.
"Legacy will be unique among Australian public companies in having this level of Indian representation on our board. Som, Nanda and Thiagarajan will bring in excess of 75 years worth of managerial and mining experience to Legacy at a time when the company is seeking to develop its current assets and secure additional resource projects," Heng said.
"Following shareholders' approval at the EGM, the placement to NMDC will potentially give Legacy improved access to development funding and ongoing acquisition opportunities offered through the NMDC network, underpinning the future growth of the Company and development of its assets," she added.
Legacy has also announced that it has placed 288,362,699 shares and various classes of options to NMDC as approved by shareholders.
