News, Takeover bids

Mincor urges shareholders to accept Wyloo offer

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Mincor Resources has announced that Wyloo Metals’ takeover offer is set to close on July 5 and is urging shareholders to accept the offer on or before this date.

Wyloo currently holes 80.22 per cent of shares in Mincor, making a competing proposal unlikely.

The takeover bid for Mincor was first launched on March 21 and is worth $760 million, with a price of $1.40 per share. The takeover has been extended twice; once to May 22, then to the current closure date of July 5.

Mincor granted formal recommendation of offer acceptance not long after Wyloo launched its first bid.

“The Mincor directors continue to unanimously recommend that Mincor shareholders accept the offer, in the absence of a superior proposal,” Wyloo said in an announcement.

“All Mincor directors have accepted the offer in respect of all Mincor shares owned or controlled by them.”

Since March 21, Wyloo’s shares in Mincor have grown from a 19.9 per cent stake to its current 80.22.

“The Mincor board reiterates that no potentially superior proposals were under consideration at the time of the target’s statement and none have emerged since,” Mincor said in a statement.

“When the offer period ends, the trading price of Mincor shares may fall below the current offer price. In addition, as Wyloo holds 80.22 per cent of Mincor shares, trading in Mincor shares may be illiquid, which could make it difficult for Mincor shareholders to sell their shares.”

Wyloo is urging all remaining shareholders to sell their shares now before Mincor is delisted and the shares are not able to be sold on the ASX.

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