The fresh bid – Albemarle has taken two previous tilts at Liontown – sent shares in the miner soaring 50 per cent in early trade to $2.26 before ending the day at $2.57,as investors digested details of the proposed buyout via a scheme of arrangement.
“The Liontown board and its advisers carefully considered the indicative proposal and unanimously determined that it substantially undervalues Liontown,and therefore is not in the best interests of shareholders,” the company told the ASX in a statement.
Liontown called the timing of the all cash bid “opportunistic” given the “recent softness in companies exposed to the lithium sector”.
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However,Albemarle said Liontown’s board had not “meaningfully engaged” with it over its proposal. “Albemarle believes this is a compelling opportunity for Liontown shareholders and that Liontown’s board should immediately engage with Albemarle to facilitate a binding offer to be put to its shareholders for their consideration,” the $US26 billion ($40 billion) lithium producer said.
The Australian miner maintains it has significantly de-risked its key Kathleen Valley lithium project,with mining operations commencing,construction progressing,and the project on track to deliver in mid-2024.