Wesfarmers has acquired Kidman Resources in relation to its proposal to acquire 100% of the outstanding shares in Kidman for $1.90 cash per share by way of a scheme of arrangement. The price represents a premium of 47.3% to the last closing price on 1 May 2019 and 44.4% to the 60-day volume weighted average price and corresponds to a transaction value of approximately A$776m ($544m). Kidman’s major asset is a 50% interest in the Mt Holland lithium project based in Western Australia, which it owns jointly with Sociedad Quimica y Minera de Chile, one of the world’s largest producers and marketers of lithium products. The project includes the construction of a mine and co-located concentrator at Mt Holland, and a lithium hydroxide refinery in Kwinana. Lithium hydroxide is key to the electric vehicle value chain. Wesfarmers Managing Director Rob Scott said the acquisition of Kidman will provide an attractive investment in a project that will benefit from the global uptake of electric vehicles, while drawing upon the Wesfarmers Chemicals, Energy & Fertilisers (WesCEF) business’ ability to design, construct, commission and operate complex chemical plants. “The proposed acquisition is consistent with our objective of deploying capital in areas where we can deliver attractive returns to our shareholders by leveraging our existing strengths and capabilities. It will underpin the development of the Mt Holland lithium project and deliver Kidman’s shareholders an attractive premium and certain cash return,” Rob Scott, Wesfarmers Managing Director.