$0.55 per share to acquire Noront Resources Ltd which, the nickel miner’s board agreed to support. However, uncertainty has arisen regarding a potential deal between the two companies, as Australian billionaire Andrew Forrest recently upped his bid to $0.70 per share. It could be said that Forrest maybe at an advantage, particularly owing to the fact that Perth-based Wyloo Metals Pty Ltd, founded by him, already owns about 37.5 per cent of Noront’s shares, and Wyloo previously said it does not intend to support BHP’s offer.
“If shareholders share my view, that it’s impossible to place a value today on a new mining district with the immense potential of these assets, I invite them to hold on to their shares and come along for the ride,” the mining magnate said in the statement.
Meanwhile, BHP noted that it would determine its next step after considering the response of the Noront board regarding Forrest’s offer. “It’s important to note that Wyloo has only made a proposal, which is subject to conditions, and has not entered into any binding agreement with Noront in respect of a transaction or a formal offer,” a spokesman for BHP said by email, adding that the BHP offer is the only offer which has already been made to shareholders.
This was reaffirmed by Noront, which said in a statement last week that Wyloo’s approach is only “a non-binding proposal” that is “not an offer”. “Wyloo has not entered into any binding agreement with Noront in respect of a proposed transaction, nor has it made a formal offer to the company’s shareholders… There can be no assurance that a transaction will crystallize from the Wyloo proposal,” Noront’s statement read.
