Arrium Ltd Rejects Unsolicited And Unconditional Acquisition Proposal

Arrium Ltd announced that after market close on September 28, 2012, it received an unsolicited acquisition proposal from a consortium of Noble Group Limited, POSCO Australia Pty Ltd, National Pension Service of Korea, Korea Investment Corporation and Korea Finance Corporation to acquire all of the shares in the Company. The proposal was stated to be conditional, incomplete and non-binding. The proposal contemplated an acquisition of all the shares in Arrium for an indicative cash price of AUD 0.75 per share by way of a scheme of arrangement. Arrium's Board and its advisers have carefully reviewed the proposal. The Board believes that the proposal undervalues Arrium in the context of a change of control transaction and that the proposal is highly conditional. The consortium's requirement to reach an agreement with Arrium's lenders (the proposed terms of which have not been disclosed to Arrium) and the requirement for six weeks of due diligence create transaction risk.