Andrew Forrest abandons plans to buy 15pc of Regis Resources

Andrew Forrest‘s Wyloo Metals has failed in its bid to get control of Regis. Picture: Luke Dray/Getty Images

Andrew Forrest has abandoned his plans to buy a 15 per cent stake in gold miner Regis Resources after he was unable to secure a stake of that amount at $168m.

Mr Forrest’s company Wyloo launched a raid on Regis after the market closed on Thursday, seeking 113 million shares at $1.48 each.

Investment bank Barrenjoey was working on the transaction.

While the bank secured more than 12 per cent of Regis for Mr Forrest, it was unable to secure 15 per cent, to which the deal was dependent on.

The $1.48 per share Mr Forrest was offering was a 13.8 per cent premium to the last traded price of $1.30.

Wyloo currently owns 4.9 per cent of Regis, and a term sheet sent to investors on Thursday night said if the full amount was not secured, Wyloo would not proceed with the acquisition of shares.

Mr Forrest’s Wyloo has previously acquired a shareholding in Regis as part of its gold investment portfolio and said it wanted to acquire further shares, which aligned with its investment strategy in this sector.

A term sheet sent to investors stated that Wyloo said it had no current intention to proceed to a takeover offer or change of control.

The move comes at a time the gold sector is expected to be in favour due to the current Australian gold price and the Australian dollar.

It also comes after Mr Forrest has been highly acquisitive of late, buying a 17 per cent stake in beauty products company BWX and a 17.4 per cent stake in AACo and a stake in Bega Cheese.

Regis Resources is an Australian-based, Australian Securities Exchange-listed gold producer and explorer based in Subiaco, Western Australia.

The company’s main assets are the fully-owned Duketon Gold Project and a 30 percent share in the Tropicana Gold Mine, both located in Western Australia.

It has a market value of $981.29m.