Wyloo, the largest shareholder of Mincor with around 19.9% of its fully paid shares, has offered a price of $1.40 cash per share, which implies an equity value for Mincor of around A$760m ($507m) on a fully diluted basis
Australian mining company Wyloo Metals, through its subsidiary Wyloo Consolidated Investments, is set to acquire the remaining stake in Mincor Resources for $504m.
Wyloo is the largest shareholder of Mincor, holding around 19.9% of its fully paid shares.
The company offered a price of $1.40 cash per share, which implies an equity value for Mincor of about A$760m ($507m) on a fully diluted basis.
The transaction price represents a 35% premium to the closing price of Mincor shares on the last trading day prior to this announcement, 20 March 2023.
Wyloo said that its proposal to acquire Mincor is in line with its strategy to invest in and develop projects that support rapid decarbonisation of the global economy.
Wyloo Metals CEO Luca Giacovazzi said: “Wyloo is providing an immediate opportunity for all Mincor shareholders who wish to dispose of their holdings to do so at a significant premium to Mincor’s last closing price.
“Wyloo’s Offer is unconditional; shareholders can sell into Wyloo’s on-market bid today and receive certain cash value for their Mincor shares.”
Wyloo said that its take-over bid delivers attractive value to Mincor shareholders, amid the current risks and uncertainties in the face of prevailing economic and equity market risks.
The risks are affecting Mincor’s valuation, as the company has seen a 49% decline in its share price over the last 12 months.
BofA Securities served as a financial advisor and Clayton Utz as a legal advisor to Wyloo Consolidated on the transaction.
The deal comes at a time when Australian companies are focusing on critical minerals processing to support the electric vehicle battery chain, reported Reuters.
Mincor is developing a nickel sulphide deposit in Western Australia that would enhance Wyloo’s exposure to the battery material
The company would also benefit from the deal as it can feed a nickel sulphate plant it is planning to build, in partnership with Australian mining company IGO, said the publication.