Wesfarmers makes $776m offer for Kidman Resources
Vesna PoljakMarkets EditorMay 2, 2019 — 8.49amWesfarmers has made a $776 million cash bid for lithium producer Kidman Resources and secured the backing of its board and joint venture partner, SQM.
The Perth-based conglomerate is offering $1.90 a share, a 47 per cent premium to Kidman's closing price, Wesfarmers said in a statement to the Australian stock exchange.
The Kidman board supports Wesfarmers' approach, on the condition that a better offer does not come along. Wesfarmers also says the deal is endorsed by Sociedad Quimica y Minera de Chile better known as SQM. SQM and Kidman are 50-50 partners in the Mt Holland lithium project in Western Australia.
Wesfarmers plans to inject $600 million into Mt Holland, targeting production by 2021-22.
Wesfarmers previously bid for another rare earths producer, Lynas, but talks collapsed.
More to come.
Vesna Poljak is The Australian Financial Review's Markets Editor. She writes about markets, investing and the economy from Sydney. Connect with Vesna on Twitter. Email Vesna at vpoljak@copyright linkRELATED QUOTES
Experience the AFR for half the price
Get unlimited access to Australia's best business news and market insights, including our award-winning app.
