The board of directors of nickel-focused, base metal miner Western Areas (WSA) plan to terminate the proposed $829.29m (A$1.10bn) takeover deal by Australia’s IGO Limited (IGO), via a board-recommended scheme of arrangement.

WSA has suspended trading following a report by an independent expert that the proposed offer was not in the best interest of its shareholders, IGO said.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

It also reported that the offer from IGO was neither fair nor reasonable.

As a result, WSA’s board intends to terminate the scheme implementation deed with IGO.

According to the deal signed in December 2021, WSA shareholders would receive A$3.36 in cash for each share held.

IGO said it would consider all options with respect to the scheme upon receiving and reviewing the draft independent expert report.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The company, however, said there was no certainty that the scheme would proceed.

IGO said in a statement: “As previously stated, IGO’s valuation of Western Areas and the proposed scheme consideration of A$3.36 in cash per share were based on IGO’s long-term view of the nickel market fundamentals and price.

“Despite recent volatility in the nickel price, IGO’s long-term view on the nickel price has not materially changed.

“IGO remains focused on pursuing growth opportunities that deliver value to IGO’s shareholders. While it will assess all options available with respect to the scheme, IGO will remain disciplined in the execution of all merger and acquisition activity.”

Last month, IGO said it would delay the acquisition of WSA due to significant volatility in nickel prices.