Kidman investors back Wesfarmers buyout
Kidman Resources shareholders have backed a $776 million takeover of the lithium producer by Wesfarmers.
Kidman said more than 94 per cent of votes at Thursday's meeting were in favour of the Perth-based conglomerate's all-cash $1.90 per share offer, with the Bunnings Warehouse and KMart owner first flagging its tilt in May.
The scheme of arrangement remains subject to court approval next Thursday.
The Kidman deal is one of a number of acquisitions Wesfarmers has eyed up since since pocketing $3.17 billion from November's spin-off of Coles, as well as the divestment of Bengalla, Kmart Tyre and Auto, and Quadrant Energy.
The company completed a deal for Catch Group in August for $230 million, which will be rolled into the Kmart Group, while a $1.5 billion tilt at rare earths miner Lynas was snuffed out last month.
Chief executive Rob Scott said at last week's full-year result Wesfarmers would continue to pursue growth opportunities both inside and outside its current stable.
Mr Scott said Thursday's approval by Kidman shareholders was an important milestone in the proposed acquisition, as well as the subsequent participation in the Mt Holland Lithium Project.
Wesfarmers will spend an additional $700 million to develop the project, which includes a mine 300 kilometres east of Perth and a lithium hydroxide plant in the WA capital.
By 1245 AEST, shares in Kidman had climbed 0.75 per cent to $1.897, while Wesfarmers shares rose 1.76 per cent to $39.22.
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