Globe says Noront favours BHP offer over Wyloo approach

2021-09-01 07:23 ET - In the News

The Globe and Mail reports in its Wednesday, Sept. 1, edition that Noront Resources is recommending its shareholders tender to BHP Group's takeover offer, despite an approach from Wyloo Metals that proposed a higher per-share transaction. The Globe's Niall McGee writes that in July, BHP made a tender offer of 55 cents a share, which Noront's board subsequently backed. On Monday Wyloo proposed an arrangement that would see it acquire Noront for 70 cents a share. On Tuesday Noront said that shareholders should stick with BHP's original offer because it is a sure thing. Noront said, "The only binding offer available to shareholders is BHP's." Noront characterized Wyloo's approach as a "non-binding indication of interest," conditional on Wyloo completing due diligence and the "execution of a definitive arrangement agreement." Noront's Eagle's Nest nickel project is what is inciting interest from the Australian heavyweights with miners worldwide scrambling to secure supplies of nickel. Nickel is a key component in lithium ion batteries. BHP is the world's biggest mining company. Wyloo is backed by Andrew Forrest, founder of Fortescue Metals Group. Mr. Forrest is one of the richest individuals in Australia.