ASX mining share Mincor Resources NL (ASX: MCR) is soaring ahead today amid a takeover offer.
Mincor shares are exploding 42% and are currently fetching $1.478. For perspective, the S&P/ASX 200 Index (ASX: XJO) benchmark is lifting 1.3% today.
So what could be ahead for this ASX mining share?
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Nickel explorer explodes more than 40%
Mincor shares are surging today after Andrew Twiggy Forrest's privately owned Wyloo Metals launched a $760 million takeover bid for the company.
Wyloo owns 19.9% of Mincor's shares already and is the company's largest shareholder.
Shareholders were offered $1.40 cash per share in an announcement to the market this morning, 35% more than Mincor's last closing price. However, Mincor's share price is now trading higher than the offer price.
Commenting on the offer, Wyloo Metals said:
Wyloo believes that the offer represents attractive value to Mincor shareholders, particularly given the current risks and uncertainties associated with remaining a Mincor shareholder in the face of prevailing economic and equity market risks.
Bank of America and Clayton Utz have been engaged by Wyloo to advise on the potential today.
What's next?
Despite today's takeover offer, there could be counterbids on the horizon. Where would these come from?
Nickel miner IGO Ltd (ASX: IGO) and BHP Group Ltd (ASX: BHP) could be potential bidders, the Financial Review reported today. BHP has previously held talks with Mincor about a takeover in the past, according to the publication.
BHP, via Nickel West, produces and exports nickel to global markets for use in electric vehicle (EV) batteries. The mining giant is already proposing to take over 100% of Oz Minerals Ltd (ASX: OZL) shares via a scheme of arrangement. Mincor provides BHP with nickel under an agreement.
IGO is a nickel producer in Western Australia with multiple operations in production including Nova and Forrestania. The company also explores copper, lithium and rare earth elements. In 2022, the company acquired nickel miner Western Areas via a scheme of arrangement.
In a presentation today, IGO said it is "committed to downstream integration in both nickel and lithium".
IGO said new nickel supply will be needed from 2026 as "EV demand exceeds supply".
Mincor share price snapshot
The Mincor Resources share price descended 29% in the last year and nearly 2% year to date.
This ASX mining share now has a market capitalisation of nearly $792 million based on the current share price.
