Ann: Update - Western Areas Scheme of Arrangement, page-2

Would an increase of 10% on the previous offer price per share be palatable to both companies?
And Wyloo supported the last offer. What might it be planning now ?
— Somehow I don’t expect it would condone an offer on WSA from BHP.
Any other thoughts?

cheers



https://thewest.com.au/business/min...doubt-by-independent-experts-report-c-6337594

IGO takeover of Western Areas thrown into doubt by independent expert’s report

Stuart McKinnonThe West Australian
Tue, 5 April 2022 9:16AM
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Stuart McKinnon


A truck emerges from the Spotted Quoll underground mine at Western Areas nickel operations at Forrestania.Credit: KIM CHRISTIAN/AAPIMAGE

IGO’s $1.1 billion friendly takeover of Western Areas is at risk of collapse after an independent expert found the deal is neither fair nor reasonable to shareholders of the Dan Lougher-led nickel miner.

Shares in Western Areas were placed in a trading halt ahead of an announcement from the company, but IGO has pre-empted that by informing the market it was about to change its recommendation on the $3.36-a-share offer and terminate its scheme implementation deed.

“IGO will consider all options with respect to the scheme once the draft independent expert’s report is received and reviewed,” the company said in a statement.
“However, there can be no guarantee that the scheme will proceed.”

IGO said its cash offer was based on its long term view of nickel market fundamentals and price.

The development comes after the nickel market was plunged into chaos last month and trade of the commodity on the London Metal Exchange had to be suspended because of a classic short squeeze that sent prices soaring.
The initial rise in price was prompted by Russia’s invasion of Ukraine which led to a range of sanctions against the pariah state, one of the world’s biggest producers of nickel.
The disruption was caused by Chinese nickel player Tsingshan, which had to move quickly to cover a series of short bets it had made that the nickel price would fall.

Western Areas said last month it would push back the timetable on its tie-up with IGO because of the spike in prices.
The company said the delay was needed to give its appointed independent expert KPMG time to digest the implications of the soaring price of nickel.

“Despite recent volatility in the nickel price, IGO’s long term view on the nickel price has not materially changed,” the company said.
“IGO remains focused on pursuing growth opportunities that deliver value to IGO’s shareholders.
“While it will assess all options available with respect to the scheme, IGO will remain disciplined in the execution of all merger and acquisition activity.”

Western Areas shares last changed hands for $3.65, well clear of IGO’s $3.36 offer price, suggesting IGO will have to raise its bid to have any chance of success.

If IGO walks away, the company would be back in play for another bidder to emerge, with BHP or Andrew Forrest’s Wyloo Metals the most likely contenders