IGO deal wins shareholder backing

Western Areas shareholders have voted largely in favour of a friendly takeover from IGO, drawing the $1.26 billion deal near to a close.

The scheme passed with approximately 94.3 per cent of participating Western Areas shareholders agreeing to the acquisition at a virtual scheme meeting on Wednesday.

Andrew Forrest’s Wyloo Consolidated Investments signalled it would vote in favour of the scheme earlier this year, despite initially stoking speculations of a competing offer by increasing its stake in Western Areas while it was in talks with IGO.

The approval comes some two months after IGO bumped up its offer price for WSA from from $3.36 to $3.87 per share after the target pushed back on the proposal in light of significant nickel price volatility.

Improved consideration lifted the deal value from around $1.1 billion to $1.26 billion.

For comparison, Western Areas’ market capitalisation was around $800 million when takeover talks first emerged. 

With shareholder endorsement in hand, Western Areas will seek approval of the scheme by the Supreme Court of Western Australia scheduled for June 7.

The scheme is set to be implemented on June 20.