Forrest’s Fortune: Billionaire Shocks Market With Jaw-Dropping $504 Million Offer For Mincor

Must Read

Billionaire investor Andrew Forrest has stunned the market with his offer to purchase Mincor Resources Limited for $504 million.

Wyloo Metals, which Australian mining magnate Andrew Forrest owns, proposed to purchase all of the shares of Mincor Resources (MCR.AX) that it doesn’t already own. The offer values the nickel developer at A$750 million ($504 million).

Mincor is developing a nickel sulphide deposit in Western Australia that could increase Wyloo’s involvement in battery materials. Additionally, the assurance could potentially supply a nickel sulphate plant that Wyloo and miner IGO (IGO.AX) are considering building.

Australia is developing a critical minerals processing industry to increase the value gained from the electric vehicle battery chain, which is why this decision has been made.

According to analysts, Mincor’s shares increased by 41% to $1.47 per share, higher than the A$1.40 per share offer price. This indicates that investors anticipate a better bid from BHP Group or IGO, which currently owns a 7% stake in Mincor.

Mincor has suggested that shareholders should not do anything for now, emphasising that Wyloo has not announced their offer as the ultimate and final one.

“The demand for high-grade nickel sulphides is increasing due to the adoption of electric vehicles and industrial decarbonisation in the world,” Mincor CEO Gabrielle Iwanow said.

“We believe that Mincor’s strategic value will continue to increase as it reaches full mining ramp-up and explores promising opportunities.”

Due to macroeconomic concerns, Mincor’s shares and other nickel producers fell 30% this year. In response, Wyloo offered 35% higher than Mincor’s last closing price. However, this offer is similar to the price from a December equity raising by Mincor.

“One month ago, Mincor’s shares were valued at A$1.40. Therefore, we believe that Wyloo’s bid is opportunistic,” RBC analysts said in a note.

In late 2021, Wyloo purchased Canada’s Noront Resources for C$617 million ($451 million) by outbidding BHP Group (BHP.AX). This is one of Wyloo’s most significant deals in the base metals sector.

Forrest, the owner of a majority stake in the fourth largest iron ore miner Fortescue Metals Group, has already acquired 19.99% of Mincor through his investment companies Wyloo and Tattarang.

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img