Wesfarmers Limited · ASX:WES
Wesfarmers — Merger or Acquisition (May 2019)
10 slides from Wesfarmers's merger presentation, May 2, 2019
Slide 1: Proposal to acquire Kidman Resources
Proposal to acquire Kidman Resources 2 May 2019
Slide 2: Transaction overview
Transaction overview • Wesfarmers has entered into a Process & Exclusivity Deed with Kidman Resources (‘Kidman’) in relation to its proposal to acquire 100% of the outstanding shares in Kidman for $1.90 cash per share, representing a transaction value of approximately $776 million • Consideration de
Slide 3: Transaction rationale
Transaction rationale • The global uptake of electric vehicles over the medium to long term provides Global uptake of electric opportunities to deploy capital & achieve attractive returns vehicles presents an attractive opportunity • Lithium is a critical raw material & input into the production of
Slide 4: Global uptake of electric vehicles presents attractive opportunity
Global uptake of electric vehicles presents attractive opportunity • The global uptake of electric vehicles in the medium to long term provides opportunities to deploy capital & achieve attractive returns: – Increasing penetration of electric vehicles driven by significant reductions in manufacturin
Slide 5: Investment in a globally significant, high-grade lithium deposit
Investment in a globally significant, high-grade lithium deposit Overview of Mt Holland Lithium Project • Mt Holland lithium project comprises: – Mine & concentrator to be located at Mt Holland in Western Australia’s Goldfields region – Refinery for processing the spodumene concentrate to be located
Slide 6: Opportunity to leverage Wesfarmers' expertise & capabilities
Opportunity to leverage Wesfarmers’ expertise & capabilities Through its Chemical, Energy & Fertilisers business, Wesfarmers can provide: A world-class capability in the manufacture of chemicals to high quality specifications Strong operating presence & knowledge in the Kwinana industrial area t
Slide 7: Partnership with an industry leader
Partnership with an industry leader Overview of SQM Partnership benefits • SQM is a Chilean-based integrated producer & • SQM & Kidman formed the Mt Holland joint seller of lithium products, potassium fertilisers, venture in 2017 specialty plant nutrients, iodine & industrial chemicals • The propose
Slide 8: Summary & next steps
Summary & next steps • Wesfarmers’ proposal to acquire 100% of the shares in Kidman for $1.90 cash per share: – delivers Kidman shareholders an attractive premium & certain cash return – underpins the development of the Mt Holland lithium project • Proposal is supported by the Kidman Board, a number
Slide 9: Questions
Questions
Slide 10: Wesfarmers
We Wesfarmers