The Mineral Resources Ltd (ASX: MIN) share price is down 1.86% in early morning trading.
Shares in the S&P/ASX 200 Index (ASX: XJO) resources producer closed yesterday at $89.11 each. They are currently changing hands for $87.45 apiece.
This comes as Mineral Resources' takeover of Norwest Energy NL (ASX: NWE) looks to be entering the final lap.
What's happening with the Norwest takeover?
Mineral Resources first announced its plans for an off-market takeover bid of Norwest – its minority joint venture partner in the Lockyer Deep gas project in the Perth Basin – on 16 December.
On the day of the announcement, the Mineral Resources share price retreated, pressured by broader market weakness.
Commenting on the takeover at the time, MinRes managing director Chris Ellison highlighted the massive potential of Lockyer Deep.
"The significant conventional gas discovery we made at Lockyer Deep last year, which we believe may be the largest onshore gas find in Australia, is driving us to develop and commercialise this high-quality energy source as quickly as possible," Ellison said.
In today's announcement (released after market close yesterday), the company reported that as at 2 March, it had voting power in Norwest of approximately 70%.
Adding some pressure on shareholders who've yet to accept the offer, Mineral Resources noted that if it acquires 80% of Norwest shares, shareholders "may be eligible for rollover tax relief".
Norwest shareholders who take up the deal will receive one MinRes share for every 1,300 Norwest shares held. At the current Mineral Resources share price, that represents a premium of just under 1% to the current Norwest share price (down 1.47% at the time of writing).
The company stressed the offer was final and would not be increased.
It added that if it's entitled to proceed to compulsory acquisition, Norwest shareholders not accepting the offer will receive the same consideration, but at a later date than if they'd accepted.
Mineral Resources said if it is not entitled to proceed to compulsory acquisition, it may apply to de-list Norwest from the ASX, "in which case it may become more difficult for Norwest shareholders to sell their Norwest shares".
Commenting on the final stages of the takeover, Ellison said:
I'm encouraged that so many Norwest shareholders have accepted our Offer and now have exposure to MinRes' world-class portfolio of diversified assets. Norwest shareholders will receive extraordinary value by accepting our offer and joining us in one of Australia's fastest growing companies.
In a separate release this morning that was marked as potentially having an impact on the Mineral Resources share price, the company provided a detailed report on its JP Morgan, Global High Yield Conference presentation.
Mineral Resources share price snapshot
Despite today's dip, the Mineral Resources share price remains a strong outperformer, up an impressive 85% since this time last year.
