Andrew Forrest’s Wyloo Metals has trumped BHP in the chase for Canada’s Noront Resources
Andrew Forrest’s Wyloo Metals has thrown down extra cash in its bidding war with BHP for control of Noront Resources.
Andrew Forrest’s Wyloo Metals group has upped its offer for Canadian explorer Noront Resources after mining giant BHP failed in its repeated attempts to convince the billionaire miner to reach a deal over the nickel play.
BHP said on Monday its talks with Wyloo had broken down, as the Forrest-owned company raised its offer for Noront, trumping BHP’s C75c (82c) a share bid by almost 50 per cent.
Wyloo already controls about 37 per cent of Noront shares, and upped its offer for the company to $C1.10 on Monday, saying it would not support any alternative bids for the nickel explorer.
“Following an extensive period of discussion, Wyloo Metals and BHP have been unable to agree terms upon which Wyloo Metals would support a BHP offer for Noront. The revised Wyloo offer will deliver a superior outcome for Noront shareholders in terms of optionality, price and deal certainty,” Wyloo said on Monday.
Wyloo noted that it not yet formalised its sweetened bid with the Noront board, saying it was subject to a “timely and good faith negotiation of an arrangement agreement in line with its fiduciary duties”.
“Given Wyloo Metals and Noront recently agreed the form of such an arrangement agreement, Wyloo Metals believes that the revised Wyloo offer can be formalised on an expedited basis,” the company said.
BHP had been trying to get Wyloo to support its C75c per share offer to acquire Noront, but has previously said it does not require it for the deal to be successful.
BHP’s sweetened offer had trumped Wyloo’s offer of 70c, winning support from the Noront board.
Noront’s early-stage Eagle’s Nest nickel and copper deposit in northern Ontario is of interest to both parties.
“BHP Lonsdale and Noront encourage Noront shareholders to tender to BHP Lonsdale’s all-cash offer of C75c per Noront share,” BHP said in a statement early on Monday morning, ahead of Wyloo’s announcement of a sweetened bid.
“As a reminder, the offer has a minimum tender requirement of more than 50 per cent of the outstanding Noront shares not beneficially owned or controlled by BHP Lonsdale or any person acting jointly or in concert with the offerer.”
BHP’s current offer expires on January 14.
BHP shares closed up $1.08, or 2.7 per cent, at $41.04 on Monday.
