Mineral Resources wins Norwest with revised $349.9M takeover bid

Image credit: Norwest Energy

Gas explorer Norwest Energy has accepted a sweetened $349.9M offer from Mineral Resources to buy the remaining stake in the oil and gas company. 

Under the agreement, Norwest shareholders will receive one fully paid ordinary MinRes share for every 1,300 Norwest shares held under the revised offer.

Based on the last closing price for MinRes shares on 24 January 2023, this equates to an implied offer price of 7.41 cents per Norwest share, a 65% premium on the undisturbed Norwest share price prior to the announcement of the MinRes takeover offer.

The defeating condition to MinRes’ Offer has also been waived, making the revised offer unconditional with payment terms being accelerated so that accepting shareholders receive MinRes shares within seven business days of acceptance of the revised offer.

Norwest Chairman Ernie Myers emphasized that the Norwest Board unanimously recommends that shareholders accept MinRes’ revised offer before it expires since it is now a good value for shareholders and there is no better 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,” he stated.

MinRes Managing Director Chris Ellison said the company is delighted to have reached an agreement on their revised offer to consolidate ownership of the Lockyer gas project.

“I want to thank the Norwest Board for their constructive discussions and for recommending that shareholders accept our revised offer,” Ellison said.

The closing date for the revised offer will be extended to 20 February 2023 to allow Norwest shareholders time to accept.