Lithium bidding war delivers bonanza for Azure directors
The rally in Azure Minerals stock amid a brewing takeover battle has delivered a windfall to its directors and top shareholders.
The value of managing director Anthony Rovira’s stake hit $26.1 million as the stock price of the lithium hopeful rocketed past $4 with billionaires Gina Rinehart and Chris Ellison circling, and major backer SQM weighing up its next move.
Shares in Azure have surged 45 per cent to a high of $4.01 since October 23 when Chile’s SQM lobbed a $3.52 per share takeover bid for the miner, which owns the Andover project in the west Pilbara. The stock closed 4.1 per cent higher to $3.85.
Managing director Tony Rovira, chairman Brian Thomas and director Hansjoerg Plaggermars exercised their rights to buy stock at 60¢.
Amid speculation Mr Ellison’s Mineral Resources is mounting a potential challenge to SQM’s takeover, more than 21 million shares changed hands on Friday.
Mrs Rinehart’s Hancock Prospecting has separately paid more than $255 million for her 18.9 per cent stake in Azure, on the cusp of the 19 per cent trigger whereby SQM can abandon its agreed deal with the Azure board.
SQM paid $20 million for its 19.9 per cent stake in March; that included off-take rights to 25 per cent of any lithium produced by Azure from Andover or other projects.
This week, Mr Rovira and two other directors profitably exercised millions of share options.
Azure revealed on Friday that Mr Rovira, chairman Brian Thomas, and non-executive director Hansjoerg Plaggemars converted their in-the-money options at a strike price of 60¢, an arrangement signed off by shareholders at the last annual meeting.
Mr Rovira has made a paper gain of $13.6 million, after exercising 4 million equity options on November 2. At $4 a share, that
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