- Western Areas (WSA) confirms that its consultation process with IGO have resulted in the parties agreeing to increase the scheme consideration to $3.87 per WSA share
- An independent expert’s draft said the initial scheme was” neither fair nor reasonable to Western Areas shareholders” therefore not in the best interests
- The Directors of Western Areas implore its shareholders to vote in favour of the revised scheme when they meet in May 2022, after IGO confirm that the revised scheme was its final offer
- Western Areas and IGO agree to extend the end date to July 31
- WSA shares are up 5.34 per cent, trading at $3.85
IGO (IGO) has agreed to lift its takeover offer of nickel producer Western Areas (WSA) to $3.87 per WSA share.
The lift comes after an independent expert rules that the proposal was not in the best interest in shareholders.
The independent expert’s draft concluded the initial scheme was” neither fair nor reasonable to Western Areas shareholders” therefore not in the best interests.
The independent expert took into consideration the implications of the volatility on the market expectations for medium to long-term nickel prices following the temporary suspension of nickel trading on the London Metals Exchange on March 8.
The Directors of Western Areas implored its shareholders to vote in favour of the revised scheme when they meet in May 2022, after IGO confirmed that the $3.87 per WSA share was the final offer.
They have also made it known that each member of the board intends to vote in favour.
If the revised scheme is implemented, each Western Areas shareholder will receive a cash amount of the total shares held.
The revised scheme implies an equity value on a 100 per cent fully diluted basis of around $1,263 million, representing a 56 per cent premium to Westen Areas’ undistrurbed closing share price of $2.48 on August 18, 2021.
Western Areas and IGO have agreed to extend the end date to July 31.
All details relating to the scheme will be sent in a booklet to shareholders around April/May.
WSA shares were up 5.34 per cent, trading at $3.85 as of 11:54 am AEST.