https://www.engineeringnews.co.za

Kidman/Wesfarmers talks going for 'some time'

9th May 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – The chairperson of takeover target Kidman Resources, John Pizzey, on Thursday revealed to shareholders that the company had been in discussions with suitor Wesfarmers "for some time" regarding a possible takeover offer.

Wesfarmers earlier this month launched a non-binding and conditional A$776-million cash offer for Kidman, offering shareholders A$1.90 a share in cash for their interest in the company.

Wesfarmers has to date gained an interest in Kidman of more than 17%.

Pizzey told shareholders at Kidman’s annual general meeting that the company sought comment and eventually support from its major shareholders, who in conjunction with the board and management controlled some 17% of the company.

“When Wesfarmers presented us with a written proposal, the board evaluated it carefully and concluded that it is in the best interest of shareholders to engage further with Wesfarmers on an exclusive basis.

“There is no doubt that the Mt Holland lithium project, being developed by the Covelant lithium joint venture has great potential. There is also no doubt that playing in the resources sector, especially when the value is liberated by developing a mine, building a concentrator and then a refinery to develop a consumable product, is a cash consuming task.

“Kidman has always been willing to go down the path of an integrated project, and the board and management are excited by this idea. But in the long run, the company does not exist for the board or management, so when in the negotiations a proposal of this value was reached, we supported it and intend to put it to you, the shareholders,” Pizzey said.

Wesfarmers has until May 29 to complete its due diligence on Kidman, with the companies working on binding transaction documentation.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

The Beneficiation Academy
The Beneficiation Academy

The Beneficiation Academy is a certified training institution that follows all compliance legislation and is accredited with various Sector...

VISIT SHOWROOM 
The Southern African Institute of Mining and Metallurgy
The Southern African Institute of Mining and Metallurgy

The SAIMM started as a learned society in 1894 after the invention of the cyanide process that saved the South African gold mining industry of the...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.045 0.785s - 140pq - 2rq
Subscribe Now