Forrest's Wyloo announces on-market takeover offer for Mincor Resources
|Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here!|
(Kitco News) - Wyloo Consolidated Investments, a subsidiary of Wyloo Metals, a private company controlled by Andrew Forrest, the Australian billionaire who founded and chairs Fortescue Metals Group, today announced an on-market takeover offer for all of the shares in Mincor Resources that are not owned by Wyloo.
The company said that the offer price of $1.40 cash per share implies an equity value for Mincor of approximately A$760 million on a fully diluted basis and represents a 35% premium to the closing price of Mincor shares on 20 March 2023, the last trading day prior to this announcement, of $1.04 per share.
Wyloo is Mincor's largest shareholder, with an interest of 19.9% of Mincor's fully paid shares.
"The proposed acquisition of Mincor is in line with Wyloo's strategy to invest in and develop projects that will produce the raw materials needed for the rapid decarbonization of the global economy," the company said.
Wyloo also noted it believes that the offer represents "attractive value" to Mincor shareholders, "…particularly given the current risks and uncertainties associated with remaining a Mincor shareholder in the face of prevailing economic and equity market risks."
"Wyloo considers these risks may be weighing on Mincor's valuation, as demonstrated by the 49% decline in its share price over the last 12 months," it added.
CEO Luca Giacovazzi commented, "Wyloo is providing an immediate opportunity for all Mincor shareholders who wish to dispose of their holdings to do so at a significant premium to Mincor's last closing price. Wyloo's offer is unconditional; shareholders can sell into Wyloo's on-market bid today and receive certain cash value for their Mincor shares."
Mincor (ASX: MCR) is an Australian company involved in the exploration for and mining of mineral resources. Mincor owns the Kambalda nickel operations, which comprise the brownfields Northern Operations and the greenfields Cassini nickel mine; and the Widgiemooltha gold project, a gold exploration opportunity.
|Boliden and Volvo join forces on deployment of underground electric trucks for mining|