Codelco is said to near buyout of Australia's Lithium Power

11th October 2023 By: Bloomberg

Codelco, the world’s biggest copper producer, is nearing a deal to acquire Lithium Power International that could value the Sydney-listed firm at nearly A$315-million ($202-million), according to people familiar with the matter.

The Chilean State-owned firm is in advanced discussions to buy out Lithium Power at about 50 Australian cents per share, representing a 43% premium to its Wednesday closing price, the people said. The companies are working on finalizing a deal, they said.

An announcement could come as soon as next week, one of the people said, who asked not to be identified as the information is private. Negotiations could still be delayed or even fall apart, according to the people.

A representative for Lithium Power didn’t immediately respond to requests for comment, while Codelco couldn’t be immediately reached for comment outside regular business hours.

Shares of Lithium Power have fallen about 20% this year, giving it a market value of around $141-million.