Lithium Americas Enters Bidding War For Millennial Lithium

Lithium appears to be hot again. Lithium Americas Corp (TSX: LAC) this morning began a bidding war for Millennial Lithium (TSXV: ML), whom was set to be acquired by CATL, a China-based firm.

Lithium Americas offer proposes that Millennial’s shareholders will receive $4.70 per common share plus $0.001 in cash, for total consideration of US$400 million for the company. The offer amounts to a premium of $0.85 per common share over the offer from CATL.

Millennial in an announcement this morning responded, indicating that it is in fact a superior offer and that they have begun a ten business day matching period in connection with the CATL agreement, enabling CATL to propose a new deal that stops Lithium Americas from being the superior offer.

The offering from Lithium Americas is said to not be contingent on any financing, with the $4.70 per share to be paid in the form of Lithium Americas shares, which would see Millennial effectively own 9.9% of the resulting company. The arrangement would also see the company pay a termination fee of US$20 million if Millennial does in fact walk from the deal with CATL.

CATL has until November 16 to provide a matching or superior offer for the company.

Lithium Americas last traded at $35.90 on the YSX.


Information for this briefing was found via Edgar 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

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

What Happens If Silver Finally Breaks $50? | Gary Thompson – Silver47

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

Lithium Americas: U.S. Interior Department Issues Favorable Thacker Pass Ruling

On May 16, the U.S. Interior Department issued a favorable ruling regarding Lithium Americas Corp.’s...

Thursday, May 18, 2023, 07:26:00 AM

Stellantis and CATL Commit €4.1 Billion to Spanish Lithium Battery Plant

Stellantis (NYSE: STLA) and Contemporary Amperex Technology Co., Limited (CATL) have announced a €4.1 billion...

Tuesday, December 10, 2024, 10:32:00 AM

Lithium Americas Slated To Complete Separation Of Business On October 3

Lithium Americas (TSX: LAC) is anticipating it will complete the separation of its businesses next...

Friday, September 29, 2023, 08:48:11 AM

Lithium Americas Pushes Cauchari-Olaroz Full Production To Mid-2024

On August 9, Lithium Americas Corp. (TSX: LAC) reported its second quarter 2023 financial results....

Saturday, August 12, 2023, 09:13:51 AM

Lithium Americas Approves Deal To Split, Bolstering China’s Lobbying Power

Lithium Americas (TSX: LAC) announced on Monday that the company’s board has unanimously approved the deal...

Tuesday, May 16, 2023, 10:17:26 AM