Lithium Americas Corp. said that it has made an offer for around US$400 million to acquire Millennial Lithium Corp. which is currently being pursued by China-based Contemporary Amperex Technology Co.
Under the terms of the offer, the Canadian lithium project developer said each Millennial shareholder will receive 4.70 Canadian dollars, around US$3.79, a share payable in its own shares and C$0.001 in cash per share.
The company noted that based on the its closing price on Oct. 29, Millennial shareholders would own around 9.9% of Lithium Americas.
Jonathan Evans, President and Chief Executive said.
As we bring Caucharí-Olaroz into production over the next year and continue to advance our Stage 2 expansion planning, the addition of this highly complementary lithium brine resource further enhances our long-term growth strategy in Argentina and leverages our technical and development expertise.
The board of Millennial said it has unanimously determined that this offer constitutes a superior proposal compared with its agreement with Contemporary Amperex Technology.
In late September, Tesla Inc. supplier CATL said it would acquire Millennial Lithium Corp. in an all-cash deal worth C$377 million.
Lithium Americas said the offer also provides for a reimbursement to Millennial for the termination fee of US$20 million payable to CATL if the CATL agreement is terminated
