Forrest Makes a Direct Bid to Investors for Mincor

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Andrew Forrest’s takeover bid for Mincor Resources this Tuesday has raised some speculation that BHP will become a nickel company’s counter-bidder.

Mincor, an Australian company that produces high-quality and environmentally-friendly nickel sulphides for the fast-growing green-energy battery industry, has its shares increased by 44.4% to $1.52 per share as of March 23, 2023.

Tattributor Wyloo makes $1.40 per share bid for Mincor

It is higher than the $1.40 per share offer made by Wyloo, a company of Tattarang, one of Australia’s largest private investment groups. However, some investors have speculated that larger companies like BHP Group or IGO might make a higher offer.

The offer price is a 35% premium to Mincor’s stock, closing on March 20, 2023.

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

“Wyloo believes that the offer represents attractive value to Mincor shareholders, particularly given the current risks and uncertainties associated with remaining a Mincor shareholder in the face of prevailing economic and equity market risks,” Wyloo said in a press statement.

Forrest and his group have held a significant stake in Mincor since December 2019. Recently, they have taken advantage of Mincor’s plummeting share prices, which have seen a decline of 29.4% this year and over 50% in the past 12 months.

Mincor board meets on Wyloo as Forrest ponders bid

The question in everyone’s mind is how many Wyloo shareholders will accept Forrest’s offer. Although Forrest has long been regarded as a potential bidder for Mincor for some time, the timing of his offer came as a surprise, putting him in possible competition with IGO and BHP.

BHP has a dominant presence in the Western Australian nickel sector through its Nickel West business and may want to avoid competing with Wyloo, which has made a big for Mincor for nickel supply.

BHP has reportedly held converXDCations with Mincor in the past and may have a variety of investment banks to choose from if they decide to make a counter-bid.

Mincor has advised its shareholders to hold on to their shares and listen to Sternship, Barrenjoey, and Gilbert+Tobin as advisers.

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