Take no action, Alpha Lithium tells shareholders
Canada-based Alpha Lithium on Friday confirmed that it had received an unsolicited takeover bid from TechEnergy Lithium Canada – a new subsidiary of Spanish firm Tecpetrol Investments – and urged shareholders not to take any action.
The company stated that its board and special committee of independent directors would review the Tecpetrol offer and related takeover circular within the next 15 days.
Alpha previously announced that it has been involved in a process to explore the potential sale of the Tolilar asset. The company believes that the Tecpetrol offer is a “transparent attempt to frustrate” the ongoing process at a “price significantly below precedent transactions”.
Tecpetrol first made an unsolicited non-binding offer on May 15, 2023, which was rejected by the board after determining the bid to be opportunistic with a low and declining premium to the trading price of the company’s common shares and not in the best interests of Alpha Lithium shareholders.
Subsequently on June 2, 2023, Tecpetrol announced its intention of taking the same undervalued bid directly to shareholders via a formal takeover bid to be made by a Canadian subsidiary that did not then exist.
Tecpetrol is offering Alpha shareholders C$1.24 a share in cash. The offer is open for acceptance until September 22.
The company said it remained open to discussions with Alpha and that there was potential to increase the offer price.
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