Leucadia, Fortescue Metals Chichester to settle pending litigation

theflyonthewall.com

Leucadia National has entered into an agreement with Fortescue Metals Group, its subsidiary, Chichester Metals Pty Ltd and Andrew Forrest pursuant to which Chichester will redeem its 2006 royalty note held by a subsidiary of Leucadia for aggregate cash consideration of $715,000,000, and the parties will settle all pending litigation and disputes without any additional payment. Closing of the redemption and settlement is subject to certain conditions, including the closing of Fortescue’s new credit facility commitment announced on September 18, 2012 by Fortescue, which Fortescue expects to occur during the fourth quarter of 2012. Should the closing occur, Leucadia expects to record a pre-tax gain of approximately $526,000,000.

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