PERTH (miningweekly.com) – Suitor Mineral Resources (MinRes) on Friday said that the current offer for takeover target Norwest Energy would not be improved upon.
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 a 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 a 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.
MinRes on Friday revealed that the company currently had a near 72% interest in Norwest.
“I’m encouraged that so many Norwest shareholders have accepted our offer and now have exposure to MinRes’ world-class portfolio of diversified assets," MinRes MD Chris Ellison said.
The suitor warned that unless it was entitled to proceed with the compulsory acquisition of Norwest, and Norwest remained trading on the ASX, remaining shareholders could be seriously impacted by the lack of liquidity in Norwest shares. Furthermore, depending on the level of acceptances received and other considerations, MinRes may apply to de-list Norwest from the ASX, in which case it may become more difficult for Norwest shareholders to sell their Norwest shares.
The MinRes offer will close on March 16.