Noront Bidding War Continues as BHP Ups Offer
PUBLISHED
2021-10-20
Content
A day after would-be Canadian nickel miner Noront Resources chose the higher offer 70 cents a share (Canadian) from Andrew Forrest’s Wyloo Metals, BHP has hit back with a higher offer of its own.
Tuesday BHP revealed a 75 cents per share offer for Noront, topping Wyloo’s offer and its own 55-cent offer made several months ago.
Noront swung its recommendation back to BHP after moving it Monday to Wyloo.
“This transaction provides a premium to Wyloo’s offer, and delivers certainty of value to Noront shareholders via an all-cash offer,” Noront chief executive Alan Coutts said.
“Noront’s board of directors determined that BHP’s improved offer is in the best interests of the company and its shareholders.”
BHP says its offer is valid until November 9, Canadian time.
Wyloo Metals, wholly owned by Dr Forrest’s investment vehicle Tattarang, owns 37.5% of Noront. The proposed deal with BHP would require 50% of the Noront register to support the deal, meaning Wyloo’s support would not be required for BHP’s offer to succeed.
“Now is the time for shareholders to decide if they want to tender to our improved offer and crystallise the compelling and full value it represents,” BHP chief development officer Johan van Jaarsveld said in Wednesday’s statement.