- Western Areas (WSA) and IGO (IGO) have confirmed that preliminary takeover discussions are underway
- The companies made respective announcements to the market this morning in response to media speculation
- Both companies confirmed change of control proposal discussions were underway, but affirmed no guarantee of a transaction taking place
- The announcement comes as IGO closes out its landmark non-controlling acquisition of Tianqi Lithium assets
- At 2:47 pm AEST, Western Areas shares are up 14.1 per cent to trade at $2.83 while IGO shares are down 4.84 per cent to trade at $9.05
Western Areas (WSA) and IGO (IGO) have both confirmed that preliminary takeover discussions are underway.
Announcements came from each company this morning in response to overnight media reports from the Australian Financial Review alluding to a potential takeover.
Western Areas confirmed preliminary discussions were underway.
“Western Areas confirms that it is in preliminary discussions with IGO Limited in relation to a change of control proposal and the basis upon which engagement and due diligence between the parties could proceed,” the statement read.
“Given the preliminary stage of discussions, there can be no assurance whether any transaction will eventuate or what the terms and conditions of any such transaction might involve.”
ASX100-lister IGO echoed these sentiments in a non-price sensitive announcement.
Both companies have said they will continue to update the market as and when appropriate.
Western Areas controls two major nickel operations in Australia, which play host to several mines and prospects at varying stages of production and exploration.
The announcement comes as IGO closes out a landmark $1.4 billion non-controlling acquisition of Tianqi Lithium assets, with the companies now eyeing a potential joint venture.
At 2:47 pm AEST, Western Areas shares are up 14.1 per cent to trade at $2.83 while IGO shares are down 4.84 per cent to trade at $9.05.