Takeover target Mincor has confirmed its nickel supply deal with BHP contains a “change of control” clause that gives BHP the right to terminate the supply contract in certain circumstances and, by extension, trigger a default on Mincor’s debt.
Confirmation the clause exists came on page 55 of the target statement published by Mincor this week in response to a $760 million takeover bid from billionaire Andrew Forrest’s private company Wyloo Metals.
The Mincor board has recommended that shareholders accept the Wyloo offer, which would be the second time in a year that a supplier of nickel ore to BHP’s Kalgoorlie nickel smelter has been acquired after IGO acquired Western Areas last year.
Neither BHP nor Mincor would confirm the existence of the secret clause when it was reported by The Australian Financial Review on Monday, but Mincor subsequently confirmed its existence in a market filing.
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