Albemarle proposes final A$3 per share acquisition offer for Liontown Resources

Albemarle Corporation has extended its final offer to acquire all outstanding shares of Liontown Resources Limited for A$3.00 per share or A$6.6 billion ($4.3 billion) in a revised, conditional, and non-binding indicative proposal. According to Albemarle, this is their best and final offer unless a superior proposal comes forward. The offer aims to consolidate Albemarle’s position in the battery minerals sector, while offering Liontown Resources shareholders a lucrative exit strategy.

Liontown Board Approves Due Diligence Process with Albemarle

The Liontown Board has granted Albemarle an exclusive period for due diligence, indicating initial approval of the proposal, but with several conditions yet to be met. This due diligence process is subject to customary fiduciary exceptions and would have to result in a mutually acceptable non-disclosure and exclusivity agreement between the two companies. The Liontown Board aims to put forth a binding proposal subject to these conditions being satisfactorily met.

Proposal Subject to Regulatory Approvals and Shareholder Vote

The revised indicative proposal from Albemarle is contingent on various conditions, including satisfactory due diligence, a unanimous recommendation from the Liontown Board, and a mutually acceptable scheme implementation deed. Any binding agreement will require further approval from Liontown shareholders and must comply with regulatory guidelines. The Liontown Board will unanimously recommend shareholders vote in favor of the Albemarle proposal, barring a superior offer, and provided an independent expert concludes the deal is in shareholders’ best interest.

No Certainty of Binding Offer for Liontown Shareholders

Liontown Resources points out that there is no guarantee the revised indicative proposal will evolve into a binding offer that shareholders can consider. In the interim, Liontown Resources advises shareholders not to take any immediate action as the Board will keep them informed of further developments.

Financial and Legal Advisers for Liontown

Greenhill & Co. and UBS have been named as financial advisers for Liontown Resources, while Allens serves as the legal adviser in relation to the Albemarle proposal. Liontown Resources, an emerging Tier-1 battery minerals producer, strives to be an ESG leader in the rapidly growing clean energy market. The company currently controls two major lithium deposits in Western Australia and is actively exploring expansion opportunities.

About Liontown Resources

Liontown Resources (ASX:LTR) aims to be a global leader in the battery minerals sector. As it transitions from being an explorer to a producer, the company places a strong emphasis on ESG principles. Liontown currently controls two significant lithium deposits in Western Australia and plans to expand its portfolio through exploration, partnerships, and acquisitions.