Azure Minerals has entered into a transaction implementation deed with Sociedad Química y Minera de Chile (SQM) and Hancock Prospecting in a major lithium play.
The offer replaces SQM’s original $1.63 billion takeover offer made in October, which was swiftly followed by Hancock acquiring an 18 per cent stake in Azure.
Under the deed, SQM and Hancock will acquire 100 per cent of shares of Azure shares as joint bidders, by way of a scheme of arrangement for a cash amount of $3.70 per share.
If the scheme proposal is unsuccessful, then an off-market takeover offer for a cash amount of $3.65 per share will be made.
Should the off-market takeover offer not succeed or be withdrawn, SQM will be required to proceed with its original takeover bid as planned.
Azure has welcomed the joint offer from Hancock and SQM and has encouraged shareholders to vote in favour of the transaction.
“The transaction delivers a fantastic outcome for Azure shareholders, including a significant uplift in value from the original SQM transaction despite elevated market volatility and the recent deterioration in lithium prices,” Azure managing director Tony Rovira said.
“The transaction also represents a great outcome for the wider stakeholders in Andover, who will benefit from the significant financial strength and expertise of one of Australia’s largest and most well-respected mining and exploration companies, Hancock, combining with SQM to oversee successful development of Andover.
“We encourage all Azure shareholders to support the transaction.”
The transaction has already shored up support from major investors including Yandal Investments and Delphi Group, who have both indicated they intend to vote in favour of the sale.
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