dr looi on fb malaysia, page-1100

And on the subject of running out of steam:
Scott ditches $1.5bn Lynas bid

NICK EVANS AUST 23Aug (Extract)
Wesfarmers has ditched its ambitions to enter the rare earths market, dropping its $1.5 billion bid for Lynas Corporation. The WA corporate giant’s March bid for Lynas — highly conditional, with no time frame for acceptance or completion — struggled to get off the ground from the outset.

It was launched when Lynas was struggling on the market, facing the possible loss of its operating licence in Malaysia and as the rare earths producer was trying to renegotiate its substantial debt burden to stay afloat. But it also came as trade tensions between China and the US were ramping up, and the US defence establishment suddenly recognised its dependence on China for rare earths — critical materials in high-end magnets and a vital element in missile systems, electric vehicles, and other hi-tech devices — was looking like a significant strategic issue as China threatened to cut off supply in response to US tariffs.

The $2.25-a-share offer by Wesfarmers looked good when it was launched — it was a 45 per cent premium to Lynas’s $1.55 share price on day one — but was rapidly left behind when Lynas announced plans to build a processing facility in May, then renegotiated its debts with its Japanese buyers a month later, and has never looked close to the money since. In the meantime, Wesfarmers has been on a buying spree, cutting a $776 million deal to enter the lithium market through a friendly tie-up with WA’s Kidman Resources, and then closing a $230m deal to buy online retailer Catch Group in June.

Despite plenty of activity elsewhere, and little traction on the Lynas front, Wesfarmers did not drop its bid until yesterday, after the Malaysian government conditionally extended Lynas’s operating licence. Faced with little shareholder interest, and a Lynas board that resisted engagement, Wesfarmers said it “has been unable to progress its proposal and does not intend to pursue it further”.

Wesfarmers chief Rob Scott confirmed in June the conglomerate remained on the hunt for more lithium acquisitions, but noted the lack of quality opportunities in the sector...........
Mr Scott said the company continued to look closely at the resources sector. “We look at a lot of opportunities, but there’s nothing that I would say that is imminent at the moment.”

Lynas shares closed down 4c to $2.42, with Wesfarmers up 11c to $38.90.