- BHP Group has sweetened its acquisition offer for Noront Resources.
- The increased offer of BHP represents a premium of 7% over Wyloo’s offer of C$0.70 per share on 18 October 2021
One of the world’s leading resource companies, BHP Group (ASX:BHP) has increased its offer for the takeover of Canadian nickel exploration company, Noront Resources. The sweetening of bid by BHP comes at a time when mineral players and EV manufacturers across the globe are striving hard to capitalise on the ongoing EV rally.
Electric Vehicle | Source: Copyright © 2021 Kalkine Media
Tug of war between Wyloo and BHP
Two days back, Andrew Forrest’s Wyloo Metals proposed a C$0.70 per share proposal to Norton’s shareholders. However, the improved offer from BHP comes barely 24 hours after Wyloo Metals secured the support of Noront’s management. BHP has increased its all-cash offer for the Canadian miner to C$419.3 million. The bidder has given Noront 22 days to accept the offer.
Wyloo and BHP locking horns | Source: © Nightowlza | Megapixl.com
Wyloo Metals is one of the top shareholders of Noront and already owns nearly 37% stake in the firm. In May 2021, Wyloo had offered C$0.315 per share to Noront to secure more shares in the company. Witnessing the opportunity, BHP had offered C$0.55 per share to Noront representing a magnificent premium of 129% to the closing price of the firm on 21 May 2021. After receiving the improved offer, the Canadian miner has recommended its shareholders to accept BHP’s offer.
BHP Group | Source: © Transversospinales | Megapixl.com
BHP’s latest offer of C$0.75 per share represents a premium of 213% against the closing price of Noront on 21 May 2021, the last trading day before Wyloo announced its plans to make an offer for Noront. The increased offer of BHP also represents a premium of 7% over Wyloo’s offer of C$0.70 per share on 18 October 2021.
While both Wyloo and BHP have sweetened their offers to acquire Noront, BHP may have an edge over Wyloo over the valuation of the nickel player. The two companies have been vying to snap up the Canadian nickel exploration company, to secure the supply of the key battery metal amid burgeoning demand for electric vehicles.