News: PPT UPDATE 1-Australian miner IGO to buy Western Areas for $785 mln in EV battery push

(Adds background in second paragraph, details on detail and funding plans, share movement)

Dec 16 (Reuters) - Australian nickel and lithium miner IGO Ltd (IGO) will acquire nickel producer Western Areas (WSA) in an all-cash deal valued at A$1.10 billion ($785.17 million), the companies said https://bit.ly/3EZaxE4 on Thursday.

The deal follows IGO's $1.4 billion acquisition of a stake in Tianqi Lithium's 002466.SZ Australian assets in June, as the company looks to capitalise on rising demand for raw materials used to make electric-vehicle batteries.

The offer of A$3.36 for each Western Areas share held is at a 3.7% premium to the stock's last close. The shares have gained about 31% since preliminary discussions about the deal were announced on Aug. 19.

Western Areas shares rose as much as 5.3% on Thursday after a trading halt, while IGO's were marginally higher.

The acquisition will be funded through IGO's existing cash and a A$900 million senior-secured debt facility, the companies said.

The deal has been unanimously recommended by Western Areas' board and its largest shareholder, Perpetual Ltd (PPT) , has agreed to vote in favour.

($1 = 1.3959 Australian dollars)