20/10/2021 - 11:30

BHP one-ups Wyloo’s bid

20/10/2021 - 11:30

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Canadian miner Noront Resources is now recommending shareholders take up a new cash offer from BHP, trumping an earlier bid from Andrew Forrest-backed Wyloo Metals.

BHP one-ups Wyloo’s bid
BHP's cash-per-share offer for Noront Resources is worth nearly $372 million. Photo: Gabriel Oliveira

Canadian miner Noront Resources is now recommending shareholders take up a new cash offer from BHP, trumping an earlier bid from Andrew Forrest-backed Wyloo Metals.

BHP this morning said it had increased its cash-per-share offer for Noront, from 70 Canadian cents to 75 cents, which would be worth nearly $C344 million ($A372 million).

That beats Wyloo’s latest bid for the Toronto-listed miner, being 70 Canadian cents, and comes a day after the Fortescue-owned outfit was named frontrunner for the acquisition.

Noront’s board is now recommending shareholders tender their stocks toward BHP’s offer since it’s a “superior proposal” to Wyloo’s offer. It’s also a 36 per cent premium on BHP’s first bid for Noront, being 55 Canadian cents.

“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 and recommends Noront shareholders tender their shares to the BHP offer.”

BHP chief development officer Johan van Jaarsveld said the new offer was a compelling premium for Noront shareholders.

“Our offer provides shareholders with the value inherent in Noront’s portfolio of projects, including the Eagle’s Nest project, delivering shareholders who accept our offer certainty of value and immediate liquidity,” Mr van Jaarsveld said.

The offer from BHP is scheduled to close at midnight on November 9 (Toronto time) and doesn’t require support from Wyloo, which owns 37 per cent of Noront.

BHP’s shares were up 1.1 per cent at 1:50pm AEDT to trade at $38.80.

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