Wesfarmers makes play for Kidman Resources

Wesfarmers has made a bid for another lithium miner with a $776 million proposal for Kidman Resources.

The Bunnings hardware owner says the Kidman board has backed its offer of $1.90 cash per share, which represents a premium of 47.3 per cent to the price before the start of trade on Thursday.

Wesfarmers managing director Rob Scott said the planned acquisition of Kidman – which comes after a $1.5 billion offer for rare earths miner Lynas Corp – would be an attractive investment that will benefit from the global uptake of electric cars.

Kidman has a 50 per cent stake in the Mt Holland lithium project – which includes a mine, a concentrator and a refinery – that is expected to start production in 2022 in Western Australia.

AAP

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