Takeover target Liontown Resources (ASX:LTR) reports that its suitor Albemarle (NYSE:ALB) has notified the company it has now almost doubled its shareholding in Liontown to 4.3%.
Liontown today (30 March) reports the increased interest compares to Albemarle’s previous 2.2% shareholding, which the target understands “to be the extent of its interests at the time of the announcement on 28 March 2023”.
Albemarle has also requested a copy of the Liontown share register, for the purpose of contacting Liontown shareholders about Albemarle’s latest non-binding indicative proposal to acquire the company.
As previously reported by Mining.com.au, Liontown has again rejected the Albemarle indicative proposal and advised shareholders they do not need to take any action at this time. It is the third offer and subsequent rejection within the past 5 months.
Under the latest offer, Albemarle has proposed acquiring Perth-based Liontown at $2.50 per share, which values the company at $5.2 billion on an enterprise basis.
On 28 March, Liontown unanimously rejected the offer, determining it ‘substantially’ undervalues Liontown and is not in the best interest of its shareholders.
Albemarle says the latest offer is a ‘compelling’ opportunity for Liontown shareholders with a per share consideration representing a ‘substantial’ premium for the target’s shareholders
Liontown is an emerging tier-one battery minerals producer. The company is transitioning from explorer to producer and currently controls 2 major lithium deposits in Western Australia.
Despite being a takeover target, Liontown says it aims to expand its portfolio through exploration, partnerships, or acquisitions and will look to participate in downstream value adding where control of the deposit provides a strong competitive advantage.
Write to Adam Orlando at Mining.com.au
Images: Liontown Resources Ltd & iStock
