Globe says Wyloo poised to acquire Noront Resources

2021-12-22 07:34 ET - In the News

The Globe and Mail reports in its Wednesday edition that Wyloo Metals is set to acquire Noront Resources for $617-million, with rival bidder BHP Group quitting the takeover battle on Tuesday. The Globe's Niall McGee writes that a week ago Wyloo offered $1.10 a share to acquire Noront, blowing an earlier 75-cent bid from BHP out of the water. Noront's board of directors got behind Wyloo's offer, and had given BHP five days to match or improve on it. With BHP out of the picture, Noront and Wyloo will now move to formalize the arrangement. The takeover must be approved by Noront shareholders in a vote, with the threshold for success being at least 66 per cent of votes cast. Wyloo already holds 37.2 per cent of Noront's shares, and Noront insiders holding an additional 10.3 per cent have agreed to back the proposal. Under the Wyloo proposal, Noront shareholders can receive cash for their shares, or elect to receive a portion in cash, and retain the rest in shares. Wyloo is backed by Andrew Forrest, one of the richest people in Australia. Mr. Forrest is slated to become chairman of the company once the transaction closes. The project will also require consultation with nine first nations communities.