Beament blasts expert finding that lithium takeover ‘not fair’
Develop Global boss Bill Beament has lashed out at an independent expert finding that its takeover offer for lithium hopeful Essential Metals is “not fair but reasonable”.
The expert’s finding is the latest twist in jockeying by WA mining Rich Listers, including Chris Ellison and Gina Rinehart, for control of lithium projects clustered around the Goldfields region of Western Australia.
Develop Global boss Bill Beament: “Please tell me where I can buy Develop shares at $1.73?” Trevor Collens
Independent expert BDO said Develop Global’s all-scrip offer for Essential and its Pioneer Dome lithium project near Kalgoorlie was not fair but was reasonable.
The 1-for-6.18 deal announced on July 3 valued Essential at about $152.6 million. BDO concluded that consideration was not fair because the value of a share in the combined entity on a minority interest and diluted basis was lower than the value it ascribed to 6.18 Essential shares.
Essential’s biggest shareholder with a 19.9 per cent stake is Mr Ellison’s Mineral Resources. The Essential board unanimously supports the Develop bid.
Mr Beament said the claim of “not fair” was based on a so-called “preferred value” of the enlarged entity of $1.73 a share. “Please tell me where I can buy Develop shares at $1.73?” he said on Friday. Develop stock was trading at $3.20; Essential closed at 47¢.
“I have spent more than $10 million buying Develop shares in recent months and I paid up to $3.20 a share. And I certainly believe that I got more than fair value. It was great value.
“The deal ensures Essential shareholders retain exposure to the Pioneer Dome lithium asset, and I can assure them no company will build Pioneer Dome better or faster than Develop.”
MinRes used its stake to block
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