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$497m the magic number in Norwest bid

MinRes Norwest

It has taken Mineral Resources (MinRes) to up its Norwest Energy takeover bid from $403 million to $497 million to gain the endorsement of the Norwest board.

MinRes’ new offer, which will see Norwest shareholders receive one MinRes share for every 1300 Norwest shares at an implied price of $0.074 per share, represents a 65 per cent premium to Norwest’s share price on December 15 when the takeover bid was first launched.

MinRes has also waived the defeating condition to its offer such that the revised offer will be unconditional, with payment terms accelerated so accepting shareholders can receive MinRes shares within seven business days of accepting the new offer.

Norwest shareholders who have already accepted the offer will receive MinRes shares within seven business days of when the notices of variation effecting the improved consideration are dispatched.

Norwest shareholders now have until February 20 to accept the offer, and any acceptees by this date will be entitled to receive MinRes’ interim dividend for the first half of 2023.

“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.

“We have worked with MinRes in the interest of our shareholders to achieve the valuation and terms reflected in its revised offer.

“The revised offer provides Norwest shareholders with an opportunity to maintain an interest in the Lockyer project through an investment in MinRes, being a company with significantly greater balance sheet strength and underpinned by a diverse portfolio of operations.”

MinRes managing director Chris Ellison said he was delighted to reach an agreement with Norwest to consolidate ownership of the Lockyer gas project.

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