Andrew Forrest, Fortescue, News, Takeover bids

Mincor holds out for a better offer


The Mincor Resources board has recommended its shareholders take no action after mining magnate Andrew Forrest bid $760 million for the company.

The bid was made through Forrest’s privately owned company Wyloo Metals in an on-market offer, meaning the offer is subject to an increase in price. Wyloo has also not declared the offer to be best and final.

Wyloo’s bid was for $1.40 a share; however, Mincor shares rose to $1.47 a share after the takeover offer was made public.

Mincor managing director and chief executive officer Gabrielle Iwanow underlined her company’s strategic value in a world that continues to decarbonise.

“We are in a world where the adoption of electric vehicles and industrial decarbonisation continues to increase demand for high-grade nickel sulphides,” she said.

“The grade, location, metallurgy and exploration upside of Mincor’s Kambalda nickel sulphide assets mean that they are highly strategic for industry players operating both upstream and/or downstream in battery and critical minerals.”

Wyloo is already Mincor’s largest shareholder with a 19.9 per cent stake, but a full takeover would see the company gain control of Mincor’s Kambalda concentrator, which supplies BHP’s nickel smelter in Kalgoorlie, WA.

Nickel is a vital component in lithium-ion batteries, which are of interest to Forrest in his company’s bid to decarbonise by 2030.

Taking control of Mincor would aid Forrest in realising these plans, but Mincor appears unlikely to budge without a higher offer.

“As Mincor approaches full ramp-up in mining, and continues to pursue its highly prospective exploration opportunities, we believe that this strategic value will continue to grow,” Iwanow said.

“Shareholders are advised to take no action in relation to the offer until they receive the Mincor directors’ formal recommendation,” the company said in a statement.

“Shareholders are reminded that as the offer is being made on-market, if they accept the offer (or sell on market) they will not benefit from any subsequent increase in the offer price or any higher price which may emerge.”

The offer will be open until 5.00pm Perth time on May 8.

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