The Tolilar project in Argentina
Tecpetrol Investments, a member of the Techint Group, will make a formal bid for Canadian firm Alpha Lithium, announcing on Friday that it will bypass the board and take its C$2.41-a-share offer directly to shareholders.
The Spain-incorporated suitor said that its hostile offer followed attempts to constructively engage with Alpha, which owns the Tolilar project, in Argentina.
Tecpetrol said it had indicated to Alpha that it would be able to increase the value of its proposal, should the parties reach agreement on a mutually acceptable transaction price. To facilitate these discussions, Tecpetrol waived its previous requests for due diligence and exclusivity. Despite the waiver of the due diligence request, which eliminated the need for a non-disclosure agreement, Alpha continued to insist that Tecpetrol execute a comprehensive non-disclosure agreement that would preclude it from making an offer directly to shareholders and limit its strategic options.
Alpha, which did not comment on the latest from Tecepetrol, previously described the news of an offer as opportunistic and not in the best interest of its shareholders.
Tecpetrol’s intention, in line with its energy transition strategy, is to sustainably develop Alpha’s premium lithium assets as part of the integrated Western battery supply chain.