Kidman Resources shareholders will vote on Wesfarmers’ $776 million takeover offer in August after the lithium miner entered into a scheme implementation deed with the WA-based conglomerate.
Wesfarmers has completed its due diligence and Kidman’s directors and its major shareholders all support the cash offer of $1.90 per share, which represents a 47.3 per cent premium to the price prior to the proposal’s announcement.
“We are extremely proud of the hard work and achievements of all our staff and the significant progress we have made to date in developing the Mt Holland Lithium Project,” Kidman chief executive Martin Donohue said on Thursday.
Wesfarmers had been looking for acquisitions after the demerger and IPO of supermarket Coles in November, as well as the the sale of the Bengalla coal mine, Kmart Tyre and Auto Service, and Quadrant Energy.
It still owns Bunnings, the Kmart Group and various industrial groups.
Wesfarmers managing director Rob Scott said they have reached an “important milestone” in advancing the transaction.
If the takeover secures shareholder approval, it will still need to get court approval ahead of an expected September completion.
At 10:35 AEST, Kidman shares were 2.0 cents, or 1.06 per cent, higher at $1.90.
Wesfarmers shares were up 0.84 per cent at $37.43.