Image Sourced Wesfarmers Limited
Market Herald logo


Be the first with the news that moves the market

Wesfarmers dropped 0.28 per cent in the ASX today after releasing to shareholders a proposal outline to purchase Kidman Resources. The report detailed a $776 million proposal to buy out 100 per cent of Kidman shares at $1.90 a share.

The intended purchase comes as a projected investment in the growing electric car industry. Kidman Resources is a tier-one lithium developer, crucial to the sustainability for electric cars.

Kidman Resources boosted a 44.6 per cent in the ASX today, finishing today’s shares at $1.87 a piece. The announcement today follows Wesfarmers’ bid earlier in the year to purchase rare earth miners Lynas for $1.5 billion.

Wesfarmers CEO Rob Scott says the new proposal will not replace the Lynas bid and has visions of owning both companies as a strong possibility.

“We see Kidman and Lynas as two very independent opportunities, separate opportunities and we’ll consider each separately…Our initial work analysing opportunities in the lithium space goes back many years,” ob said.

“We remain open to engaging with the board of Lynas. We have a very high regard for the management of Lynas and their capabilities, and clearly if both opportunities were to go ahead we would be drawing very heavily on the expertise and the capabilities of the Lynas team,” Rob said.

The company outlined a method of debt facilities to fund the Kidman purchase. The release outlined that debt will not affect the company’s credit rating.

Notable groups under the Wesfarmer’s ownership include Bunnings Warehouse, Kmart, Target, Officeworks, Kleenheat, Coles and Flybuys.

Wesfarmers’ share prices saw a wild trajectory today, opening at $35.58, peaking at $35.72 and dropping and climbing to finish at $35.69 a piece. The market cap remains at $40.82 billion.

Please see the ASX announcement for further details

WES by the numbers
More From The Market Herald
Redcape Hotel Group (ASX:RDC) -

" Redcape Hotel Group (ASX:RDC) announces share buyback results

Redcape Hotel Group (RDC) has announced the results from the share buyback it is carrying out ahead of the company’s planned delisting.
ISX (ASX:ISX) - Managing Director, John Karantzis

" iSignthis (ASX:ISX) completes demerger

Software company iSignthis (ISX) has completed the demerger of its European business ISC Financial EU (ISXFEU).

" Retail Food Group (ASX:RFG) prepares for lawsuit with Michel’s Patisserie

Retail Food Group (RFG) has told its investors to prepare for another class action lawsuit against the business from franchisee Michel’s Patisserie.
MoneyMe (ASX:MME) - CEO, Clayton Howes

" MoneyMe (ASX:MME) hits $1b originations milestone

MoneyMe is celebrating after hitting a $1 billion in originations milestone during the recent September quarter of the 2021 financial year.