MinRes presses Norwest shareholders

Minerals Resources has told Norwest Energy investors they won’t receive an improved offer for their shares and dangled a veiled threat to delist the company in a bid to gain further control of its Perth Basin partner.

MinRes’s voting power in Norwest has crept up to approximately 70 per cent stake since lobbing a one-for-1,300 scrip offer for its joint venture partner in December last year.

In a statement today, the miner said the offer put to investors was ‘best and final’ and extended the deadline, which passed Thursday, to March 16.

As well as indicating that the offer would not be increased, MinRes suggested any Norwest shares not entered into the offer could lose value and become harder to sell.

“Norwest shareholders should be aware that if MinRes is not entitled to proceed to compulsory acquisition, and Norwest continues to be listed on the ASX following the offer, then the decrease in the number of Norwest shares available for trading may have a material impact on their liquidity and valuation,” MinRes said.

The company went a step further, saying that it might apply to delist Norwest from the ASX.

“Furthermore, depending on the level of acceptances received and other considerations, MinRes may apply to delist Norwest from the ASX, in which case it may become more difficult for Norwest shareholders to sell their Norwest shares.”

Chief executive Chris Ellison said Norwest shareholders would receive extraordinary value by accepting his company’s offer.  

“I’m encouraged that so many Norwest shareholders have accepted our offer and now have exposure to MinRes’s world-class portfolio of diversified assets,” he said.

The $400 million-plus bid comes amid fierce competition for Perth basin assets.

MinRes shares closed the day down 0.68 per cent to trade at $89.42.