Alpha Lithium’s Board Recommends Taking Tecpetrol Deal

Alpha Lithium’s (NEO: ALLI) board of directors has recommended accepting the improved offer from Tecpetrol Investments for the acquisition of all outstanding common shares of Alpha. The offer stands at $1.48 per share in cash.

This comes after Caravel Capital Investments, a major shareholder of the company, issued an open letter endorsing Tecpetrol’s revised offer to acquire Alpha Lithium.

Tecpetrol has also expressed its approval of the Alpha Lithium board’s decision and strongly encourages Alpha shareholders to act promptly by tendering their Alpha shares.

The board’s recommendation is said to be the result of careful deliberation and is based on several key factors. Firstly, the special committee of the board considered the disruptive impact of Tecpetrol’s unsolicited offer on Alpha’s ongoing efforts, including the sale process for its Tolillar Project and a broader strategic review that has spanned ten consecutive months. Unfortunately, these initiatives were hindered by Tecpetrol’s offer, making it challenging for the company to secure fair value for its shareholders.

As of the current date, the strategic review has not yielded a binding offer for the Tolillar Project or the purchase of common shares. The company does not anticipate such an offer materializing before the October 3, 2023 deadline, which is the expiry for Tecpetrol’s revised offer.

While the special committee acknowledges the possibility of a superior offer emerging in the future, it emphasizes that the current offer from Tecpetrol is presently the only open offer for the purchase of all outstanding shares.

Meanwhile, the committee also considered various risks and uncertainties. One notable factor is that the Tecpetrol offer remains highly conditional, giving Tecpetrol the discretion to withdraw or proceed with its offer. There is no guarantee that Tecpetrol can satisfy all the conditions of the increased offer, including the statutory minimum tender condition, which requires the deposit of common shares representing more than 50% of the outstanding shares.

Tecpetrol has indicated previously that if it is obligated to satisfy the statutory minimum tender condition but cannot complete the acquisition, it will explore alternative options, including open market purchases or privately negotiated transactions.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Alpha Lithium Files Technical Report Outlining 70% Indicated Resource Improvement

Alpha Lithium (NEO: ALLI) has filed its updated NI 43-101 mineral resource estimate report for...

Monday, August 21, 2023, 09:06:29 AM

Major Alpha Lithium Shareholder Openly Endorses Tecpetrol’s Revised Acquisition Bid

In a significant development for the shareholders of Alpha Lithium Corporation (NEO: ALLI), Caravel Capital...

Tuesday, September 26, 2023, 09:47:00 AM

Alpha Lithium Drills 351 mg/L Lithium Brine At 352-Metre Depth At Tolillar Salar

Alpha Lithium Corporation (TSXV: ALLI) announced Friday morning results from its original six-well program at...

Sunday, November 21, 2021, 11:09:00 AM

Tecpetrol Raises Alpha Lithium Takeover Bid to $1.48 Per Share

Tecpetrol Investments is not giving up on acquiring all outstanding common shares of Alpha Lithium...

Friday, September 22, 2023, 01:18:42 PM

Alpha Lithium: Momentum-Based Share Price Move May Not Be Justified by Fundamentals

Strong sales of electric vehicles (EV) this year, optimism for an even steeper future trajectory...

Monday, December 7, 2020, 11:51:20 AM