Liontown Resources (ASX:LTR) will grant suitor Albemarle Corporation (NYSE:ALB) an opportunity to conduct a limited period of exclusive due diligence regarding a revised takeover offer.
Takeover target Liontown today (4 September) has recommended a revised takeover offer from US-based Albemarle, which values the company at $6.6 billion (US$4.26 billion).
The new $3 offer price is higher than the $2.5 offer the company received in March 2023.
Albemarle has advised that the revised indicative proposal is its best and final offer, in the absence of a superior proposal.
The revised offer is subject to several conditions before it would be binding. This includes due diligence to the satisfaction of Albemarle; the Liontown board unanimously recommending the proposal; and entry into a mutually acceptable scheme implementation deed.
Any scheme implementation deed would itself also be subject to approval of the scheme by Liontown shareholders and regulatory approvals.
As a result of the new offer Liontown 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. This is also subject to the parties agreeing to a mutually acceptable non-disclosure and exclusivity agreement.
Should Albemarle make a binding proposal at $3 per share (subject to agreement of a mutually acceptable binding scheme implementation agreement) the intention of the Liontown board is to unanimously recommend shareholders vote in favour of the proposal, in the absence of a superior proposal.
There is no certainty that the revised indicative proposal will progress to a binding offer.
Greenhill & Co. and UBS are acting as financial advisors and Allens as legal advisor to Liontown in relation to the revised proposal.
Liontown Resources is an emerging tier-one battery minerals producer. Its aim is to be an ESG leader and a globally significant provider of battery minerals for the rapidly growing clean energy market.
The company currently controls 2 major lithium deposits in Western Australia and aims to expand its portfolio through exploration, partnerships and acquisitions.
Write to Adam Orlando at Mining.com.au
