The Azure Minerals Ltd (ASX: AZS) share price is up receiving a larger bid, which includes Gina Rinehart’s Hancock Prospecting.
Azure Minerals is an ASX lithium share, SQM is a major lithium miner from Chile.
New takeover agreed
Azure Minerals has entered into a new binding transaction implementation deed with Sociedad Quimica y Minera de Chile (SQM) and Hancock Prospecting.
The joint bidders have proposed to buy all of the Azure Minerals shares for a cash amount of A$3.70 per Azure Share. Or, if this is not successful, it’ll offer A$3.65 cash per Azure share via an off-market takeover.
These numbers are an upgrade on SQM’s prior bid of A$3.52 cash per share, and a fall-back takeover offer of A$3.50 per Azure share.
This new offer of A$3.70 per Azure share implies a value of around $1.7 billion. It represents a 5.1% improvement on the original SQM bid and a 63.9% premium to the 10-day average price of A$2.26 per Azure share before the bid was announced in October 2023.
Is it a done deal?
The transaction still has some conditions to get through, such as obtaining Foreign Investment Review Board (FIRB) approval, specific competition law approvals and Azure shareholders approving the joint bid arrangements between SQM and Hancock.
But, it’s not subject to any financing or due diligence conditions, and the offer is not subject to any minimum acceptance condition.
The Azure board has unanimously recommended the transaction, as long as there isn’t a better offer and that the independent expert concludes the offer is in the best interests of shareholders, and that it’s fair and reasonable.
Two of Azure’s major shareholders, Creasy Group and Delphi Group, each intend to support the transaction.
If this does not go ahead, SQM will in certain circumstances “be required” to proceed with the takeover offer component of the original bod of A$3.50 per share.
People that own Azure Minerals shares are getting a good deal it seems, and I’d be glad to see a larger offer. For investors still interested in lithium, it could be a good time to re-invest into other ASX lithium shares because of the cheaper lithium price and share prices we’re seeing.
