Albemarle Lithium makes revised bid to acquire Liontown valued at US$4.3bn
Albemarle, the world’s leading lithium producer, yesterday confirmed that it submitted a “best and final” non-binding proposal to acquire all outstanding shares of Liontown (ASX: LTR) by way of scheme of arrangement for A$3.00 cash per share.
In a statement, Albemarle said that the revised proposal values Liontown at A$6.6 billion or US$4.3 billion on an equity value basis. The previous proposal of A$2.50 per share in cash, announced on March 27, 2023, valued Liontown at A$5.2 billion or US$3.4 billion on an enterprise basis.
The company pointed out that the revised proposal “delivers an immediate premium for Liontown investors and is expected to drive significant value creation for Albemarle shareholders,” adding that Liontown board intends to recommend the revised proposal to its shareholders, “subject to entry into a binding agreement and other terms and conditions.”
“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,” it said.
According to a press release, Albemarle and Liontown will enter into a mutually acceptable non-disclosure and exclusivity agreement granting Albemarle with an exclusivity period to undertake confirmatory due diligence and negotiate a binding scheme implementation deed (SID).
“The revised proposal is non-binding and there is no certainty that any transaction will be agreed to or will proceed,” the company said.
Albemarle Corporation is a global leader in transforming essential resources such as lithium and bromine into critical ingredients for mobility, energy, connectivity, and health.
Liontown Resources is an emerging battery minerals producer. The company currently controls two major lithium deposits in Western Australia and aims to expand its portfolio through exploration, partnerships and acquisitions.
