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.

Leave a Reply