21st Dec 2021 17:57
(Alliance News) - BHP Group PLC on Tuesday said it will not bump up its offer for Noront Resources Ltd to match the one on the table from Wyloo Metals Pty Ltd.
Earlier in December, Wyloo sweetened its offer for Noront to CAD1.10 per share, which is 47% above BHP's proposal of CAD0.75. Wyloo said the Noront board supported the latest bid.
BHP was given the right to match Wyloo's proposal, but on Tuesday said it has decided not to.
"BHP is committed to its strict capital discipline framework. While the Eagle's Nest deposit is a promising resource, we do not see adequate long-term value for BHP shareholders to support an increase in BHP's offer in order to match the CAD1.10 per share proposal from Wyloo Metals Pty Ltd," said BHP Chief Development Officer Johan van Jaarsveld.
BHP shares closed up 2.3% at 2,195.00 pence in London on Tuesday. They added 2.7% in Johannesburg to ZAR460.28.
By Lucy Heming; [email protected]
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