Chilean company Sociedad Química y Minera de Chile (SQM) has signed a binding transaction implementation deed (TID) to acquire all of the shares it does not already own in Australia’s Azure Minerals.
Azure owns a 60% stake in the Andover lithium project in Pilbara, Western Australia. The remaining 40% stake is owned by Creasy Group.
Earlier this year, Azure rejected SQM’s buyout bid that valued the former at A$901.4m. The bid was rejected in light of the increasing potential of its Andover project.
SQM’s non-binding and highly conditional offer was A$2.31 per share.
Under the revised offer, SQM agreed to acquire all of the remaining shares in Azure at an offer price of A$3.52 per share.
The deal implies A$1.63bn ($1.03bn) in fully diluted equity value for Azure, in which SQM already holds a 19.99% interest.
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
The transaction has been unanimously recommended by the Azure board in the absence of a superior proposal.
This deal is, however, contingent upon the conclusion by an independent expert that the takeover offer is reasonable and fair, among others.
Azure managing director Tony Rovira said: “Whilst we firmly believe that Andover has the potential to be a major lithium project, there is significant time, cost and risk associated with developing a project of this scale, particularly in the context of an uncertain broader economic outlook.
“As such, the board believes that the transaction provides Azure shareholders with a compelling opportunity to de-risk their investment and realise certain value at an attractive premium to historical trading levels.”
