Wesfarmers share price: Wesfarmers makes $1.1 billion bid for Lynas
Wesfarmers have made a A$1.5 billion takeover offer for Lynas on Tuesday morning. A near 45% premium to Lynas’ last traded price.
Australian retail giant Wesfarmers has announced it has bid to acquire niche rare earths miner Lynas for A$1.50 billion.
The strategic approach from Wesfarmers opens opportunity to obtain Lynas in Western Australia. Which is also the world’s sole producer of rare earths outside of China.
Wesfarmers also operates home improvement depot Bunnings, and recently spun off supermarket chain Coles group.
‘We also acknowledge the importance of the Lynas Advanced Materials Plant in Malaysia and the strong contribution made by Lynas’ management team and its employees across all operations. We expect Lynas’ employees to continue to play an important role in taking the company forward.’ Wesfarmers said in an announcement.
Lynas' share price near 18-month lows on licence issues
Westfarmers made an offer of A$2.25 per Lynas share, a near 45% premium to the miner's closing share price.
It comes as Lynas shares were at near 18-month lows after facing difficulties over environmental licences in Malaysia, where its chemicals plant is located.
Wesfarmer’s proposal is dependent on Lynas having relevant operating licences in Malaysia for satisfactory periods after the deal is closed.
Analysts expect more bidders to emerge
Analysts say the price is too low and expect other bidders to likely pay more.
Wesfarmers share price
Wesfarmers shares fells to their lowest in 1 month after announcing the takeover bid for Lynas.
Wesfarmers shares fell 3.6% to A$33.76, marking their biggest intraday percentage fall since February this year.
The Wesfarmers stock has hit its lowest since March 6 on Tuesday, making it the top percentage loser on the benchmark S&P ASX200 index, at time of writing.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.