The IGO Ltd (ASX: IGO) share price is frozen today at $10.63 per share.
The S&P/ASX 200 Index (ASX: XJO) resource explorer and producer requested a trading halt today “pending an announcement in relation to a potential acquisition“.
What other ASX resource share is frozen today?
Not coincidentally, the Western Areas Ltd (ASX: WSA) share price is halted alongside the IGO share price today as well.
In its ASX announcement this morning, Western Areas said it was requesting the pause in trading “pending an announcement by the company regarding a potential change of control transaction involving the company”.
The Motley Fool first reported on early news of IGO’s interest in acquiring rival Western Areas in exchange for shares back on 19 August.
At the time IGO acknowledged its interest, saying, “IGO confirms that it is in preliminary discussions with Western Areas in relation to a change of control proposal and the basis upon which engagement and due diligence could proceed.”
The IGO share price tumbled 6% that day while Western Areas shares leapt 13% higher.
Now, as the Australian Financial Review reports, IGO has “agreed an all-cash takeover offer” for Western Areas. “It is understood the bid values Western Areas at more than $3.30 a share.”
Western Areas was trading for $3.24 when markets closed yesterday.
According to the AFR, “IGO’s expected to fund the bid with some new debt and existing cash reserves. The bid would value Western Areas at more than $1.1 billion. Western Areas is expected to tell shareholders to accept the offer.”
Stay tuned!
IGO share price snapshot
The IGO share price has been charging higher over the past 12 months, up 66%. By comparison the ASX 200 has gained 9% since this time last year.
Over the past month IGO shares are up 8%.
Earlier this month, broker Citi upgraded the company’s shares to a buy rating from neutral with a target for the IGO share price of $12.40.
The post Here’s why the IGO (ASX:IGO) share price is not going anywhere today appeared first on The Motley Fool Australia.
Should you invest $1,000 in IGO right now?
Before you consider IGO, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and IGO wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
More reading
- Is the IGO (ASX:IGO) share price a better buy than Allkem?
- Why Hipages, IGO, Talga, and Vulcan shares are storming higher
- IGO (ASX:IGO) share price storms higher on broker upgrade
- ASX 200 (ASX:XJO) midday update: Sydney Airport takeover update, Santos falls
- Top ASX shares to buy in December 2021
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3oWmDZ0
Leave a Reply