On July 1, 2020, Essential Metals Limited (ASX: ESN) announced that it had rejected the takeover bid from China’s Tianqi Lithium Corporation and its Australian partner IGO Limited. The offer had been made in June and was valued at A$1.67 billion.
Essential Metals is a specialty metals company that is focused on the exploration and development of lithium, cobalt and gold deposits. It owns a 50% interest in the world’s largest hard rock lithium deposit, the Mt Marion Lithium Project, located in Western Australia. The other 50% is owned by Mineral Resources Limited.
Tianqi Lithium Corporation is one of the world’s largest lithium producers. It is based in China and is listed on the Shenzhen Stock Exchange. IGO Limited is an Australian company that is listed on the ASX. It is a diversified mining and exploration company that operates in Australia and Africa.
The offer from Tianqi Lithium and IGO was for A$1.67 billion, which represented a premium of 68.4% to the Essential Metals’ share price prior to the announcement. The offer was subject to a number of conditions, including approval from the Foreign Investment Review Board and the Australian Competition and Consumer Commission.
Essential Metals’ board of directors has unanimously rejected the offer, citing a number of reasons. They said that the offer undervalued the company and its assets, and that it did not reflect the long-term value of the company. They also said that the offer was not in the best interests of shareholders.The board of directors also noted that the offer was subject to a number of conditions, including approval from the Foreign Investment Review Board and the Australian Competition and Consumer Commission. They said that these conditions could take a significant amount of time to be approved, and that this could have a negative impact on the company’s operations.
The board of directors also noted that the offer did not include any premium for the company’s gold assets, which are located in the Pilbara region of Western Australia. They said that these assets could be worth up to A$500 million, and that the offer should have taken this into account.The board of directors also noted that the offer did not provide any value for the company’s lithium development projects in Western Australia. They said that these projects could be worth up to A$1 billion, and that the offer should have taken this into account.
The board of directors also noted that the offer did not provide any value for the company’s cobalt assets, which are located in the Northern Territory. They said that these assets could be worth up to A$200 million, and that the offer should have taken this into account.The board of directors also noted that the offer did not provide any value for the company’s exploration assets in other regions. They said that these assets could be worth up to A$300 million, and that the offer should have taken this into account.
The board of directors also noted that the offer did not provide any value for the company’s potential to become a vertically integrated producer of lithium. They said that this could add significant value to the company, and that the offer should have taken this into account. The board of directors concluded that the offer from Tianqi Lithium and IGO undervalued the company and its assets, and that it did not reflect the long-term value of the company. They said that the offer was not in the best interests of shareholders, and that they had unanimously rejected it.
The rejection of the offer from Tianqi Lithium and IGO has been welcomed by Essential Metals’ shareholders, who were concerned that the offer undervalued the company. The rejection of the offer has also been welcomed by the Australian government, which was concerned about the potential for foreign ownership of the company. The rejection of the offer from Tianqi Lithium and IGO has also been welcomed by the Western Australian government, which was concerned about the potential for foreign ownership of the Mt Marion Lithium Project. The project is located in the Pilbara region of Western Australia, and is the world’s largest hard rock lithium deposit.
The rejection of the offer from Tianqi Lithium and IGO has also been welcomed by the Northern Territory government, which was concerned about the potential for foreign ownership of the company’s cobalt assets. The assets are located in the Northern Territory, and could be worth up to A$200 million. The rejection of the offer from Tianqi Lithium and IGO has also been welcomed by Australia’s mining industry, which was concerned about the potential for foreign ownership of the company’s exploration assets in other regions. These assets could be worth up to A$300 million, and could provide significant benefits to the Australian economy.
The rejection of the offer from Tianqi Lithium and IGO has also been welcomed by the Australian lithium industry, which was concerned about the potential for foreign ownership of the company’s potential to become a vertically integrated producer of lithium. This could add significant value to the company, and could provide significant benefits to the Australian economy.
