Wesfarmers responds to media reports, updates market on Lynas bid

Company News

by Anna Napoli

Wesfarmers (ASX:WES) has responded to media reports about its discussions with the Malaysian Government regarding its proposal to acquire Lynas.

The conglomerate says it is disappointed at the mischaracterisation of its discussions with the Malaysian Government and rejects any inference that these were inappropriate or intended to interfere with Government process.

Wesfarmers announced a $1.5 billion, $2.25 a share approach for the rare earths miner two weeks ago.

Last Friday Malaysian Prime Mininster Dr Mahatir Mohamad, (said at a press conference) that Lynas may continue to operate if raw materials are brought to Malaysia after initial processing.
As a license condition, this would require Lynas to undertake the cracking and leaching process offshore.

Yesterday Lynas bowed to pressure and agreed to shift part of its processing plant to Western Australia for initial processing.

Wesfarmers says it has engaged in discussions with the Malaysian Government to better understand the licensing and regulatory regime affecting Lynas’ operations in Malaysia, and to present its credentials as a potential acquirer of Lynas.

Wesfarmers Managing Director Rob Scott says the company see's the Prime Minister’s statements as a positive step towards the resolution of longstanding regulatory and operating uncertainty for Lynas.

Shares in Wesfarmers (ASX:WES) are trading 0.26 per cent lower at $34.34
 

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.