Minara Resources Receives $1 Billion Bid from Glencore

Nickel miner Minara Resources saw a jump in share prices Wednesday as Swiss mining and trading house Glencore International offered to purchase the remaining 27 per cent stake Minara did not own. Minara’s shares closed on the ASX Wednesday at 87.5 cents, up 23.5 cents, after more than 35.93 million shares were considered for being bought up for $1.02 billion. Glencore offered Perth-based Minara Resources 87 cents a share for the 27 per cent stake.

Minara, previously named Anaconda Nickel and run by Andrew Forrest, is one of the top three nickel producers in Australia and among the top ten nickel producers globally. Its most notable mine is the Murrin Murrin mine, located in Western Australia between Leonora and Laverton. Murrin Murrin is already 82 per cent effectively owned by Glencore, which owns 40 per cent of Murrin Murrin directly and has about 73 per cent in Minara Resources, which owns 60 per cent of Murrin Murrin.

SEE TOP STORIES FROM THE WDM CONTENT NETWORK 
* Top Billionaire Andrew Forrest
* Special Report: Commodity Trading
* Spotlight on Clive Palmer
* READ THE LATEST ISSUE OF BUSINESS REVIEW AUSTRALIA!

Minara said that an independent committee comprised of Chairman Malcolm Macpherson and board member John Morrison and Peter Johnston has been formed to consider the offer. The independent committee will shortly appoint an independent expert to provide an opinion to Minara shareholders on whether the offer is fair and reasonable.

Glencore’s formal bid would be open from September 8 to October 10, but Glencore will seek to buy Minara shares on-market at the offer price up to the middle of next week. It’s possible that the October 10 date could be extended.

Business Review Australia is now available on the iPad! Click here to download it.