Australia's Azure Minerals rejects $585 mln takeover bid from Chile's SQM (updated)

Azure Minerals

15/08/2023 01:35

(Recasts first paragraph, updates throughout with background
and details)
       Aug 15 (Reuters) - Lithium developer Azure Minerals
 AZS.AX  said on Tuesday it rejected a buyout bid from Sociedad
Química y Minera de Chile (SQM)  SQMA.SN  valuing the Australian
company at A$901.4 million ($584.74 million).
    Azure, which owns around a 60% stake in the highly
prospective Andover project in Australia's Pilbara region, said
it decided to reject the offer in light of the increasing
potential of the lithium project.
    SQM, which is partnering with Australian firm Wesfarmers
 WES.AX  to build the A$1.9 billion Mt Holland lithium project
in Western Australia, acquired an initial 19.99% stake in Azure
for A$20 million in March.
    Azure also flagged that the offer price of A$2.31 per share
received from the world's second biggest lithium chemicals maker
was lower than its Aug. 8 intraday high of A$2.96.
    "Azure determined that the approaches did not warrant
further engagement by the company and no further discussions
have occurred," the company said in response to recent media
speculation.
    Global lithium giant SQM, whose biggest shareholder is
China's Tianqi Lithium Corp  002466.SZ , did not immediately
respond to a Reuters' request for comment. 

($1 = 1.5415 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru; Editing by
Subhranshu Sahu)
 ((Rishav.Chatterjee@thomsonreuters.com;))