Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Lynas on Wednesday told shareholders that after evaluating the indicative non-binding and highly conditional takeover proposal from fellow listed Wesfarmers, the company has taken the decision not to engage with the suitor on the terms outlined in the proposal.
Wesfarmers earlier this week launched a A$1.5-billion takeover offer for Lynas, offering shareholders in the company A$2.25c a share in cash for all the shares held.
The cash offer was subject to a number of conditions, including the completion of a due diligence, and the execution of an implementation agreement, as well as assurance that all the relevant operating licences in Malaysia are in force and will remain so for a “satisfactory period” following the completion of the transaction.
The deal was also subject to regulatory and shareholder approvals.
Lynas told shareholders on Wednesday that in coming to the conclusion not to engage with Wesfarmers, the Lynas board had taken a number of factors into consideration, including the current market and operating conditions.
The company also noted that its value was derived from its strong, “irreplaceable” assets, including its Mt Weld orebody and its substantial in-house capability and intellectual property, which the company has created over the last six months.
Lynas share prices traded more than 2% higher on Wednesday, at a high of A$2.16 a share, up from an opening price of A$2.08 a share.