Liontown plans to accept $6.6b Albemarle deal

afr.com:

Australian lithium aspirant Liontown Resources has signalled it will accept an improved $6.6 billion takeover bid from US giant Albemarle if it follows through with a binding offer at that price.

Liontown revealed on Monday that Albemarle had improved the non-binding offer it made in March to $3 a share, and that it granted Albemarle access to due diligence.

Liontown chairman Tim Goyder in Perth. Trevor Collens

Liontown said that price would be sufficient. “The intention of the Liontown board is to unanimously recommend shareholders vote in favour of the proposal in the absence of a superior proposal,” the company said in a statement.

The board’s position means major shareholder and chairman Tim Goyder, who owns 15 per cent, has decided $3 is a fair price for his stake.

The improved bid by Albemarle comes after a week in which Mr Goyder’s other critical minerals market darling, Chalice Mining, lost 34 per cent of its value after publishing a poorly received scoping study.

Albemarle boss Kent Masters told The Australian Financial Review last week that his company remained keen on Liontown, describing the interest as a “standing offer”.

Liontown’s flagship asset is the Kathleen Valley lithium project, a spodumene asset near the West Australian town of Leinster.