Bidding war ends in Ring of Fire takeover
Noront shareholders are being advised to take BHP's new cash offer in a bid to take over the Canadian mining company that owns the rights to the Ring of Fire mineral deposit in northern Ontario after receiving no counter from rival Wyloo Metals. BHP and Wyloo are based in Australia.
BHP Western Mining Resources International made an all-cash offer of C$0.75 per share, a 36 per cent increase to its original offer of C$0.55 and a seven per cent increase to Wyloo's C$0.70 offer, more than a week ago. It is the only offer that remains available to investors.
"Noront has heard nothing from Wyloo since receiving improved BHP offer," the resource company said in a news release Thursday. "Further, Wyloo has made no indication of making an offer and is under no obligation to respond to the improved BHP offer, and Noront has no current indication of Wyloo's intentions."
Shareholders have until Nov. 9 to decide on tendering their shares in the company at a 213 per cent premium to Noront's unaffected share price.
"Noront’s Board of Directors determined that BHP’s improved offer is in the best interests of the Company and its shareholders and advises Noront shareholders tender their shares by Friday, Nov. 5, well ahead of the BHP offer deadline of 11:59 p.m. EST on Nov. 9 to ensure that shares are tendered in time," the company said.
The Ring of Fire development is expected to take many years, with remote infrastructure still required.
"There is no certainty that shareholders remaining invested in Noront will ever realize the value for their shares offered by BHP in cash today," BHP said in a news release on Oct 20.
CTVNews.ca Top Stories
'Too young to have breast cancer': Rates among young Canadian women rising
Breast cancer rates are rising in Canada among women in their 20s, 30s and 40s, according to research by the University of Ottawa (uOttawa).
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
'I was scared': Ontario man's car repossessed after missing two repair loan payments
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Canada recognizes housing as a human right. Few provinces have followed suit
As more Canadians find themselves struggling to afford or find housing, the country's smallest province is the only one that can point to legislation recognizing housing as a human right.
Minister 'outraged' after AFN national chief's headdress taken from Air Canada cabin
The federal minister of Crown-Indigenous relations is calling on Air Canada to 'make things right' with the national chief of the Assembly of First Nations, who said her headdress was removed from an airplane cabin during a flight this week.
What to know about avian influenza in dairy cows and the risk to humans
Why is H5N1, or bird flu, a concern, how does it spread, and is there a vaccine? Here are the answers to some frequently asked questions about avian influenza.
'Violation': CSIS had officer investigated after she reported a superior raped her
A CSIS officer's allegations that she was raped repeatedly by a superior in agency vehicles set off a harassment inquiry, but also triggered an investigation into her that concluded the alleged attacks were a “misuse” of agency vehicles by the woman.
Pro-plastic lobbyist presence at UN talks is 'troubling,' say advocates
Environmentalist groups are sounding the alarm about a steep increase in the number of pro-plastic lobbyists at the UN pollution talks taking place this week.