• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 6 days Does Toyota Know Something That We Don’t?
  • 6 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days China is using Chinese Names of Cities on their Border with Russia.
  • 9 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 9 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 9 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 8 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 9 days Putin and Xi Bet on the Global South
  • 9 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 10 days United States LNG Exports Reach Third Place
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Iraq Moves to Take Control of Kurdistan's Finances

Iraq Moves to Take Control of Kurdistan's Finances

The Iraqi federal government is…

Australian Lithium Producer Plans To Accept Albemarle’s Acquisition Offer

The board of Australian lithium producer Liontown Resources intends to recommend shareholders vote in favor of a new increased buy offer from Albemarle if the world’s largest lithium producer makes its latest revised indicative proposal a binding offer.

Earlier this year, Albemarle submitted a non-binding proposal to acquire all outstanding shares of Liontown by way of scheme of arrangement for AUS$2.50, or US$1.661, per share in cash, which values Liontown at AUS$5.2 billion, or US$3.4 billion, on an enterprise basis. But Liontown Resources rejected that offer.

On Monday, the Australian company announced it had received a revised non-binding offer from Albemarle to buy all outstanding shares in Liontown at AUS$3.001 cash per share, which values Liontown at AUS$6.6 billion, or US$4.32 billion, on an equity value basis.

“After carefully considering the Revised Indicative Proposal, the Liontown Board has determined to grant Albemarle an opportunity to conduct a limited period of exclusive due diligence, subject to customary fiduciary exceptions, to enable it to put forward a binding proposal, subject to the parties agreeing to a mutually acceptable non-disclosure and exclusivity agreement,” the Australian company said today.

If Albemarle makes a binding proposal at the latest indicative price, “the intention of the Liontown Board is to unanimously recommend shareholders vote in favor of the proposal in the absence of a superior proposal and subject to an independent expert concluding (and continuing to conclude) that the proposed transaction is in the best interests of shareholders,” Liontown added.

The Australian company also noted that there is no certainty that the revised indicative proposal would progress to a binding offer for consideration by shareholders.

Albemarle, for its part, said that “The Revised Proposal delivers an immediate premium for Liontown investors and is expected to drive significant value creation for Albemarle shareholders. The transaction is consistent with Albemarle's long-term growth and stated M&A strategy, as well as its disciplined approach to capital allocation and risk-adjusted value accretion.”  

By Charles Kennedy for Oilprice.com


More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News