Forrest dives into another mining merger hotspot

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Forrest dives into another mining merger hotspot
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Billionaire Andrew Forrest complicated BHP and IGO’s attempts to acquire nickel miners, and now Andrew Forrest has put himself between Newcrest and its most logical takeover target

Billionaire Andrew Forrest has inserted himself into another potential takeover stoush by becoming the biggest shareholder in the explorer that is being closely watched by Australia’s biggest gold miner Newcrest Mining.

The Wyloo investment was the highlight of a $340 million injection of funds for Greatland and came as former Fortescue chief Elizabeth Gaines, Reserve Bank director Mark Barnaba and former BHP executive Jimmy Wilson, joined Greatland’s board. Wyloo agreed to pay 8.2 pence for each Greatland share; the stock was below that level for the entire period between August 30 and September 8.

Wyloo’s spend on Greatland may yet rise to $120 million after it received warrants granting it the option to buy more shares for 10 pence each if certain milestones are achieved.The Wyloo investment coincided with Greatland securing a $220 million loan from ANZ, ING and HSBC on a seven-year term. “Completing the debt facilities and Wyloo investment will enable Greatland to be fully funded for its share of costs in developing the Havieron project into first production and potential free cash flow,” he said.

Wyloo was also a stone in the shoe of IGO over the past year as it sought to acquire nickel miner Western Areas.

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