Wesfarmers (ASX:WES) has made a conditional, non-binding indicative $1.5 billion proposal for rare earths miner Lynas.
The $2.25 a share proposal is a premium of 44.7 per cent to the last closing price and a premium of 36.4 per cent to the 60-day weighted average price of Lynas to 25 March 2019.
The proposal is conditional on Wesfarmers entering into a binding implementation agreement with Lynas, due diligence and regulatory approvals.
Wesfarmers says it is uniquely placed to support Lynas’ future through further capital investment to support downstream processing assets and realise the full potential of the Mt Weld ore body.
Shares in Wesfarmers (ASX:WES) are trading 3.03 per cent lower to $33.97, and Lynas Corp (ASX:LYC) is on a trading halt the company last traded at $1.55.