News: WSA UPDATE 1-Australian miner Western Areas agrees to IGO's revised $939 mln offer

(Adds deal details and background)

April 11 (Reuters) - Western Areas Ltd (WSA) agreed to a revised takeover offer from nickel-lithium miner IGO Ltd (IGO) on Monday, valuing the Australian nickel producer at A$1.26 billion ($939 million).

The revised offer of A$3.87 for every Western Areas share is 15.2% higher than the prior offer of A$3.36 apiece and represents a premium of 6% to the stock's last close.

Western Areas' board had initially recommended shareholders vote in favour of the A$3.36-per-share deal, but its view changed after an unprecedented surge in nickel prices last month as Russia's invasion of Ukraine hit a short bet made by top producer Tsingshan Holding Group.

IGO said the revised offer recognises additional financial value generated by Western Areas as a result of higher nickel prices, as well as improvement in nickel price forecasts over the short- and medium-term.

Western Areas' board unanimously recommended that their shareholders vote in favour of the revised proposal.

IGO said it will fund the revised deal through a combination of a new A$900 million senior-secured debt facility and existing cash reserves.

($1 = 1.3414 Australian dollars)