To recap, IGO and Wyloo struck a 70:30 joint venture to explore downstream nickel processing on February 17. In tandem, Wyloo (a 9.8 per cent shareholder at Western Areas, who investors had hoped would launch a competing bid) pledged support for IGO’s December bid.Both companies insisted there was no certainty where the JV would land.But Odey, a 1 per cent shareholder at Western Areas, doesn’t agree. It was pointing shareholders to IGO’s November, 2019 pre-feasibility study on downstream nickel sulphate, which pegged a $236 million net present value on the facility.To Odey, this makes Wyloo’s 30 per cent joint venture stake worth $71 million; in turn implying Wyloo’s getting a 67 per cent higher offer price than the $3.36 for other Western Areas shareholders.
Also in the AFR today.
WSA Price at posting:
$3.58 Sentiment: Hold Disclosure: Held
