02 Nov Lithium Americas’ $400 million takeover bid accepted by Millennial Lithium board
Lithium Americas has revealed that its unconditional offer to acquire all outstanding shares of Millennial Lithium has trumped an earlier offer for the TSXV-listed player from a Chinese EV battery manufacturer.
The C$4.70 per share bid from Lithium Americas, payable in cash and common shares, values Millennial at around US$400 million, compared to Contemporary Amperex Technology Co’s C$3.85 per share offer for a total cash consideration of approximately US$297 million.
Millennial’s board subsequently determined that the Lithium Americas offer constitutes a ‘superior proposal’, leaving Contemporary Amperex with 10 business days to match the offer, should it choose to do so.
Millennial has two non-producing lithium brine assets in Northern Argentina — Pastos Grandes and Cauchari East – in a similar geography to Lithium Americas’ Caucharí-Olaroz lithium project in Jujuy province.
Caucharí-Olaroz is expected to enter production in Q3 2022 and will have an annual production capacity of 40,000 tonnes lithium carbonate equivalent (LCE) over a projected mine life of 40 years.
“In proximity to Caucharí-Olaroz, Millennial’s 100%-owned Pastos Grandes lithium brine project represents an attractive regional growth opportunity for Lithium Americas,” said CEO Jonathan Evans.
“As we bring Caucharí-Olaroz into production over the next year and continue to advance our Stage 2 expansion planning, the addition of this highly complementary lithium brine resource further enhances our long-term growth strategy in Argentina and leverages our technical and development expertise.”