PERTH (miningweekly.com) – The scheme of arrangement between nickel miner Western Areas and fellow-listed Independence Group (IGO) is now legally effective, after the Supreme Court of Western Australia backed IGO’s takeover bid, and the lodgement of the orders with the Australian Securities and Investment Commission (ASIC).
IGO increased its offer price for Western Areas from A$3.36 a share to A$3.87 a share, after an independent expert found that the offer was neither fair nor reasonable, and not in the best interest of shareholders.
The directors of Western Areas have unanimously backed the takeover offer, in the absence of a superior proposal.
Western Areas shares trading will be suspended at the end of business on Wednesday, and the scheme is expected to be implemented on June 20.
IGO said on Wednesday that the company had been working closely with Western Areas on the important process of integrating the two businesses, and was looking forward to welcoming the Western Areas team into the IGO business once the transaction had been completed on June 20, 2022.
“The acquisition of Western Areas represents a logical consolidation of key nickel assets in Western Australia and enhances IGO’s position as a leading, independent producer of metals critical for a clean energy future,” IGO MD and CEO Peter Bradford said.
“We are looking forward to unlocking unique synergies across the combined nickel portfolio comprised of Nova, Forrestania and Cosmos, as well as the immediate commencement of the downstream nickel sulphate feasibility studies, bringing IGO closer to key customers in the clean energy and electric vehicle industries.”