Panoramic Resources goes defensive over Independence takeover bid

At stake is Panoramic’s Savannah nickel sulphide mine in WA’s Kimberley region.

Panoramic Resources is understood to have hired Azure Capital as defence adviser following a $312m takeover bid from Independence Group.

Independence Group (IGO) offered Panoramic holders one of its own shares for every 13 Panoramic shares on issue on Monday, valuing its target at 47.6c a share - a 42 per cent premium to its 33.5c close on Friday.

Working with Independence Group is investment bank Citi.

The all-scrip move on the nickel producer was first flagged in DataRoom in October and shares continue to trade higher in Panoramic after initially soaring following the bid.

Western Areas has also eyed a tilt at Panoramic, as revealed by The Australian this week.

At stake is Panoramic’s Savannah nickel sulphide mine in WA’s Kimberley region, which the company has struggled to return to production after its 2016 closure.

Independence Group (IGO) has been circling Panoramic for some time, taking a 3.8 per cent stake in the company during an emergency capital raising in September, which was its second this year.

Panoramic advised shareholders to take no action on the IGO bid, saying it would consider the offer.

Panoramic shares were trading at 44c in mid afternoon trade.