PERTH (miningweekly.com) – ASX-listed Mineral Resources (MinRes) has taken a majority interest in takeover target Norwest Energy, after gaining a 53.86% share in the company.
As a result of MinRes’ interest in the company now exceeding more than 50%, the suitor has extended the closing date for its takeover offer until March 2.
MinRes earlier this year launched its takeover offer for Norwest, offering Norwest shareholders one fully paid MinRes share for every 1 367 Norwest shares held, implying a value of 6c per Norwest share.
The company later revised its offtake offer to one fully paid ordinary share in MinRes for every 1 300 Norwest shares held, implying an offer price of 7.41c per Norwest share and implying a value of A$497-million for the takeover target.
The Norwest directors unanimously recommended that shareholders accept the revised offer.
“I’m delighted that so many Norwest shareholders have already accepted our Revised Offer and that we now have majority control of Norwest,” said MinRes MD Chris Ellison.
“I urge Norwest’s remaining shareholders to quickly accept our revised offer and benefit not just from our accelerated payment terms but by ensuring they become entitled to MinRes’ interim dividend.
“Accepting our offer is a no-brainer. Those who don’t accept will be left behind in a MinRes-controlled company with none of the upside of being a MinRes shareholder or exposure to our world-class portfolio of diversified assets.
“Those who fail to promptly accept our revised offer will also miss out on receiving our interim dividend and risk having their own share price and liquidity diminish – but will still have to shoulder the burden of their share of significant Perth Basin exploration and development risk.”
Norwest’s principal asset is a non-operating interest in onshore Perth Basin exploration permits EP 368, in which it holds a 20% interest, and EP 426, in which it holds a 22.22% interest. MinRes and its subsidiaries are the permit operators and owners of the remaining interest in EP 368 and EP 426.