Australian company BHP makes takeover bid for Canada's Noront Resources
BHP makes cash offer for issued and outstanding Noront shares
Another Australian company is moving forward with a takeover bid for Noront Resources, with a cash offer for all outstanding and issued shares of the Canadian company.
Noront's board of directors is recommending shareholders accept the offer from BHP, which would pay 55 cents cash for each share.
This is the second Noront takeover bid by an Australian company this year. In May, Wyloo Metals offered 31.5 cents cash for Noront shares.
"This transaction provides a significant premium to Wyloo's indicative offer, and crystallizes immediate and certain value through an all-cash offer," Noront CEO Alan Coutts said in a statement.
"After careful consideration, Noront's board of directors, with input from its financial and legal advisers and the special committee, determined this offer is in the best interests of the company and shareholders.
"BHP has the financial strength, world-class mining expertise, and commitment to work in partnership with stakeholders to advance Eagle's Nest and the Ring of Fire, which has the potential to deliver benefits to local communities, First Nations, and Ontario for years to come."
The total equity value of the BHP transaction is $325 million.
"We are pleased that the Noront board has seen the value in our offer and has recommended it to its shareholders," BHP chief development officer Johan van Jaarsveld said in a statement. "This is a win-win for both BHP and Noront shareholders.
"For BHP, the acquisition of Noront presents a world-class growth option, in a key future-facing commodity," he said. "The highly prospective Eagle's Nest nickel project provides an excellent platform from which to develop further opportunities in Ontario's Ring of Fire. For Noront shareholders, this offer recognizes and realizes the full value of Noront's portfolio, delivering guaranteed shareholder returns in the near term."
Noront said the bid will be formally commenced shortly following Tuesday's announcement. Shareholders will be notified via mail.
Shareholders can tender their shares at noronttender.ca.