May 27 (Reuters) - Canadian miner Noront Resources is looking to adopt a poison-pill plan to thwart a potential takeover of the company by Australian mining magnate Andrew Forrest’s Wyloo Metals.
Wyloo’s unsolicited bid for the remaining shares of the company values Noront at C$133 million ($110.12 million), or C$0.315 per share. It is Noront’s top shareholder, with a 23% stake as of December.
“The rights plan is designed to ensure that all Noront shareholders are treated fairly in connection with any takeover bid and to protect against ‘creeping bids’ for the outstanding common shares of Noront,” the miner said in its statement.
Poison pills prevent other companies and investors from amassing ownership stakes above a certain threshold by authorizing the targeted company to sell new stock to its shareholders at a discount.
The company said it would issue one right for each outstanding share, effective May 26, and the right will allow the shareholders, other than the acquiring person and its related parties, to purchase additional shares at a 50% discount to the then prevailing market price.
Wyloo is a subsidiary of Forrest’s Tattarang, one of Australia’s largest private investment groups.
$1 = 1.2078 Canadian dollars Reporting by Rithika Krishna in Bengaluru; Editing by Anil D’Silva