Atlantic rejects buyout offer from major shareholder

Atlantic Lithium (ASX:A11) rejected a conditional and non-binding takeover offer (NBIO) from its major shareholder, Assore International Holdings. 

It’s the second time in as many months Assore has sought to take control of Atlantic. 

Under the offer, Assore looked to acquire all Atlantic shares that it did not already own, pursuant to a scheme of arrangement, at $0.63 per share. 

This NBIO followed an earlier approach from Assore on 2 October 2023 at an identical price of $0.63 per share that was similarly rejected by Atlantic. 

Atlantic, which has a market capitalisation of $235.71 million, says its independent board committee determined that the offer undervalued the company and was not in the best interest of its shareholders. 

Following today’s announcement, Atlantic’s share price has climbed 27% to $0.49 as of 12:30pm AEDT. 

Both Assore offers were subject to several conditions before they would become binding. 

These included Atlantic’s board unanimously recommending the offer and providing exclusive due diligence to Assore’s satisfaction, Foreign Investment Review Board approval, and entry into a definitive and mutually acceptable scheme implementation agreement. 

Atlantic Lithium Executive Chairman Neil Herbert says Assore, an African mining company, has been a ‘leading’ investor and key contributor to Atlantic, and the company looks forward to maintaining a ‘strong’ relationship with its investors as it progresses its Ewoyaa Lithium Project in Ghana. 

Canaccord Genuity was appointed as Atlantic’s financial advisor and HopgoodGanim Lawyers as its legal advisors for the Assore offer. 

Atlantic Lithium is a dual-listed lithium company focused on advancing its lithium portfolio in Ghana and Côte d’Ivoire. 

As of 30 September 2023, the company had $10.6 million cash at hand, according to its latest quarterly report.

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Images: Atlantic Lithium
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.