Albemarle Corporation ALB raised its bid to take over all the outstanding shares of Liontown Resources Ltd. LINRF, a Perth, Australia-based company, for A$3.00 cash apiece.
The revised proposal values Liontown at A$6.6 billion or $4.32 billion on an equity value basis. The earlier proposal, made in March, valued Liontown at $3.4 billion on an enterprise basis (at A$2.50 per share).
Albemarle and Liontown will now enter into a mutually acceptable non-disclosure and exclusivity agreement granting Albemarle an exclusivity period to undertake confirmatory due diligence and negotiate a binding SID.
The revised proposal is non-binding and there is no certainty that any transaction will be agreed to or proceed.
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At the end of the second quarter, Albemarle's total debt was $3.5 billion. The company exited the quarter with cash and equivalents worth $1.6 billion.
Liontown Resources is an emerging Tier 1 Battery Minerals producer. The company controls two significant lithium deposits in Western Australia: Kathleen Valley in the northern goldfields and Buldania in the eastern goldfields.
Albemarle said that the latest deal delivers an "immediate premium" for Liontown investors and is expected to drive significant value creation for its shareholders.
The transaction is consistent with Albemarle's long-term growth and stated mergers and acquisitions strategy. Albemarle also announced the closing of its C$109 million investment with Patriot Battery Metals Inc PMETF.
ALB Price Action: Albemarle Corporation closed Friday higher by 0.78% to $200.26. After-hours trading had shares up 0.045% at $200.35.
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