Australia's Mincor Resources soars most since 2000 on Wyloo Metals offer

Mincor Resources NL

21/03/2023 04:25

(Updates shares, adds analyst comments)
    ** Shares of Mincor Resources  MCR.AX  surge as much as
43.3% to A$1.49, their sharpest gain since June 2000
    ** Stock hits highest level since Feb. 16
    ** Unit of Wyloo Metals, backed by Australian billionaire
Andrew Forrest, offers to buy all the shares of MCR it does not
already own
    ** Deal values the nickel miner at A$750.3 mln ($503.90 mln)
    ** Offer price of A$1.40 cash per share represents a 34.6%
premium to MCR's last close; shares trading consistently above
offer price
    ** Analysts at RBC say rival bids may be in the offing, IGO
 IGO.AX  or BHP Group  BHP.AX  could be potential contenders 
    ** "We view Wyloo's bid as opportunistic as Mincor's share
price has fallen ~26% over the last month" - RBC 
    ** Trading volumes about 7 times the 30-day average, with
about 11 mln shares traded so far
    ** Stock down ~30.9% this year as of last close 
    



($1 = 1.4890 Australian dollars)

 (Reporting by Harshita Swaminathan and Upasana Singh in
Bengaluru)
 ((Upasana.Singh@thomsonreuters.com))