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Mineral Resources Ltd plans to make an off-market bid for the remaining stake in oil explorer Norwest Energy that it does not already own through a scrip deal with an implied equity value of about A$403 million ($269.93 million).
Mineral Resources, which already owns a 19.9% stake in Norwest, intends to offer one share for every 1,367 Norwest shares, the mining services provider said on Friday.
This implies an offer price of A$0.06 per share, a 33.3% premium to Norwest’s last closing price.
Mineral Resources said acquiring Norwest, which is its minority joint venture partner for the Lockyer Deep gas project in Perth Basin, “is a logical and accretive addition to unlocking the potential of its portfolio of gas assets”.
“The significant conventional gas discovery we made at Lockyer Deep last year, which we believe may be the largest onshore gas find in Australia, is driving us to develop and commercialise this high-quality energy source as quickly as possible,” Mineral Resources Managing Director Chris Ellison said.
Mineral Resources expects its offer to be open for acceptance by Norwest shareholders in early January 2023.
($1 = 1.4930 Australian dollars)
(By Himanshi Akhand; Editing by Shinjini Ganguli and Shounak Dasgupta)
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