The ASX could be about to bid farewell to nickel mining giant Western Areas Ltd (ASX: WSA) as the company prepares to be acquired by S&P/ASX 200 Index (ASX: XJO) resources monolith IGO Ltd (ASX: IGO).
If all goes according to plan, Western Areas shares will be suspended from trading as of tomorrow's close. That will mark an end to the company's 22-year chapter on the ASX.
At the time of writing, the Western Areas share price is $3.87, 0.13% higher than its previous close.
For context, the ASX 200 is currently down 1.39% while the S&P/ASX 200 Materials Index (ASX: XMJ) is down 0.19%.
Let's take a closer look at what the next few days could bring Western Areas.
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Will tomorrow be this ASX nickel miner's last day of trade?
The ongoing acquisition of $1.2 billion nickel miner Western Areas by IGO has taken another step forward as the Supreme Court of Western Australia gives the takeover its tick of approval.
Now, all that there is to do is for Western Areas to lodge a copy of the court's orders to the Australian Securities and Investments Commission (ASIC), making the scheme legally effective. The company plans to do so tomorrow.
After the document is submitted, the company's stock is expected to close for the last time.
Though, Western Areas shareholders won't be left out in the cold. They'll receive $3.87 cold hard cash for every share in the company they own.
That's up from IGO's previous bid of $3.36 per share. It was placed before the now-renown short squeeze that saw the price of nickel rocketing 250% in a single day.
Thus, an independent expert found the initial bid – placed in December – undervalued the billion-dollar nickel miner come April.
It was a lucky happening for Western Area shareholders. They are now likely expecting a payout in the near future.
