The extension gives Norwest shareholders more time to consider Mineral Resources’ (MinRes) $497 million offer, after saying “those who don’t accept will be left behind”.
After MinRes’ initial $403 million offer was knocked back, the Norwest board accepted a revised $497 bid in February.
The closing date for acceptance by Norwest shareholders was originally slated for March 2, but MinRes has announced it is extending the offer period to March 16.
The extension gives Norwest shareholders more time to consider MinRes’ offer, which the mining company has urged them to accept.
“Those who don’t accept will be left behind in a MinRes-controlled company with none of the upside of being a MinRes shareholder or exposure to our world-class portfolio of diversified assets,” MinRes managing director Chris Ellison said at the time the increased offer was accepted by the Norwest board.
“Those who fail to promptly accept our revised offer will also miss out on receiving our interim dividend and risk having their own share price and liquidity diminish – but will still have to shoulder the burden of their share of significant Perth Basin exploration and development risk.”
Miners have been battling in WA for control over the state’s gas assets for months, and oil and gas exploration company Norwest Energy is chief among the targets.
WA gas sites are seen as a source of inexpensive gas for power generation and mineral processing, which will prove especially important as the resources sector faces a more difficult fossil-fuel market in coming years.
In December, MisRes made an unsolicited takeover offer of Norwest, offering one MinRes share for every 1376 Norwest shares, with an equity value of $403 million. But this offer was rejected by the Norwest board, who called it “opportunistically timed” and said it failed to properly recognise the value of the company.
Undeterred, MinRes sweetened the deal in February, offering one MinRes in return for every 1300 Norwest shares – representing an equity value of $497 million.
This increased offer was welcomed by the Norwest board.
“The Norwest board is satisfied that MinRes’ improved offer is now a good deal for shareholders, and in the absence of a superior offer, unanimously recommends shareholders should accept the revised offer before it closes,” Norwest chair Ernie Myers said.