Andrew Forrest’s Tattarang has bought $38 million of Western Areas shares since March, revealed a day after IGO confirmed the nickel miners were in takeover discussions.
It follows Tattarang’s recent $46 million investment in Tasmanian fish-farming business Huon Aquaculture Group, which was widely reported as an effort to stop a takeover from Brazilian meat processing giant JBS.
Yesterday, IGO confirmed it was in preliminary talks with Western Areas related to a change of control proposal but said there was no certainty as to whether a transaction would eventuate.
Both parties have begun their due diligence.
Shares in Western Areas have risen 20 per cent since close of trade on August 18, to $2.98 as at 11:37pm AEST. That implies a market capitalisation of about $900 million.
The company runs the Forrestania operations in the Fraser Range, and is developing the nearby $299 million Odysseus mine, which forms part of its larger Cosmos project.