Australian lithium miner Azure agrees to $1 bln takeover bid from Chile's SQM (updated)

Azure Minerals

26/10/2023 24:40

(Adds further details on deal in paragraphs 2-5)
       Oct 26 (Reuters) - Australia's Azure Minerals Ltd
 AZS.AX  said on Thursday it had agreed to a takeover offer from
Chilean mining giant Sociedad Química y Minera de Chile (SQM)
 SQMA.SN , in a deal implying an equity value of A$1.63 billion
($1.03 billion) for the lithium producer.
    Azure, which owns around 60% stake in the highly prospective
Andover lithium project in Western Australia's Pilbara region,
had previously rejected a buyout bid from SQM that valued the
miner at A$901.4 million.
    Under the new proposed deal, SQM agreed to acquire all of
Azure's shares at an offer price of A$3.52 per share, a premium
of 44.3% to the stock's last close of A$2.44 on Friday.
    The world's second-biggest lithium chemicals maker, which is
partnering with Australian conglomerate Wesfarmers  WES.AX  to
build the A$1.9 billion Mt Holland lithium hydroxide project in
Western Australia, bought a 19.99% equity in Azure for A$20
million in March.
    "Azure Board unanimously recommend that Azure shareholders
support the transaction by voting in favour of the scheme... in
the absence of a superior proposal," the company said in a
statement. 
($1 = 1.5898 Australian dollars)

 (Reporting by Roushni Nair in Bengaluru; Editing by Anil
D'Silva and Subhranshu Sahu)
 ((Roushni.Nair@thomsonreuters.com;))