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Consolidated sells 23% BC Iron stake

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PERTH, Sept 6 AAP

September 06 2013, 12:40AM

BC Iron shares have fallen almost three per cent after a major shareholder, Consolidated Minerals, sold a 23 per cent stake in the company.

Consolidated Minerals, which was a founding shareholder in BC Iron, sold more than 28 million shares at $3.90 per share to institutional investors on Thursday, just days after collecting a 30 cent per share dividend.

The $3.90 per share price offer was a five per cent discount to Thursday's closing price of $4.10.

Shares in the Pilbara iron ore miner have fallen 11 per cent since the company's shares went ex-dividend on Monday.

The sale frees up liquidity in the company, seven months after major shareholder Regent Pacific Group offloaded its 20 per cent stake.

BC Iron said it welcomed the new shareholders and looks forward to their participation in the company.

At 1225 AEST BC Iron shares were 11 cents, or 2.7 per cent lower at $3.99.

Last month BC Iron said its profit fell by four per cent despite higher revenue, due to a loss on currency movements and writedowns on the value of some of its assets.

The final dividend to shareholders doubled from the previous year to 30 cents per share.