Lithium Americas Corp (TSX: LAC) announced on Wednesday that the shareholders of acquiree Millennial Lithium (TSXV: ML) approved the proposed acquisition. The transaction secured approximately 98% of the votes in favor of the arrangement.
The company first made an offer to acquire Millennial Lithium in November 2021, bidding against China-based firm Contemporary Amperex Technology. Lithium Americas then entered into a definitive agreement where Millennial Lithium shareholders will receive $4.70 equivalent of Lithium Americas shares plus $0.001 in cash per share, putting total consideration of US$400 million for the transaction.
Following the approval, the firm is now securing a final court order and expects the transaction to close on January 25, 2022.
The lithium company recently raised US$258.8 million from its offering of 1.75% convertible senior notes due 2027, including full exercise of the overallotment option.
Lithium Americas last traded at $39.64 on the TSX.
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.
