Australian lithium miner Wesfarmers (ASX:WES) announced on Thursday that it has entered into a Scheme Implementation Deed (SID) with Kidman Resources Limited (ASX:KDR), confirming the terms to acquire 100% of Kidman's outstanding shares.
The agreed price of $1.90 per share represents a premium of 47.3% to the last closing price on 1 May 2019, prior to the announcement of Wesfarmers' proposal to acquire Kidman for A$776 million ($534 million).
The Kidman Board has unanimously recommended that Kidman shareholders vote in favour of the SID.
Wesfarmers said a number of Kidman's major shareholders, board members and key management, which together own approximately 17% of Kidman's outstanding shares, have indicated their support of the deal and have entered into voting agreements with the miner.
"This is an important milestone in advancing a transaction that provides Wesfarmers with an attractive investment and delivers Kidman shareholders with a compelling premium and certain cash return," Wesfarmers' Managing Director Rob Scott said in the media release.
Wesfarmers is working with Kidman and the Mt Holland lithium project joint venture company, Covalent Lithium, towards developing a large-scale, long-life and high-grade lithium hydroxide project in Western Australia.