IGO-Tianqi Lithium JV looks to beef up assets with Essential Metals bid (updated)

Essential Metals

08/01/2023 22:54

(Adds deal details, background)
       Jan 9 (Reuters) - Australian miner IGO Ltd  IGO.AX  on
Monday said Tianqi Lithium Energy Australia (TLEA), its joint
venture with Tianqi Lithium Corporation  002466.SZ , had
proposed a A$136 million ($93.57 million) buyout bid for
Essential Metals  ESS.AX  as the JV looks to beef up its assets
in Western Australia.
        With the offer of 50 Australian cents per share
representing a 44.9% premium to Essential's last close on
Friday, Essential's directors have unanimously recommended
shareholders vote in favour of the proposal in the absence of a
superior offer.
  
        The transaction is subject to a number of regulatory
clearances, including approval from Australia's Foreign
Investment Review Board (FIRB), a regulator that reviews foreign
investments in the country.
  
        The deal was announced at a time when companies are
racing to capitalize on booming prices and demand of lithium, a
key component of electric vehicle batteries, amid a global push
to reduce carbon emissions.
  
        Essential's portfolio includes the Pioneer Dome Project,
located about 130 km (81 miles) south of Kalgoorlie in Western
Australia.
  
        "The ESS transaction provides an opportunity to
accelerate lithium exploration to bring new resources to
production," said Matt Dusci, acting chief executive officer of
IGO.
  
        IGO has a 49% stake in TLEA, with Tianqi Lithium holding
the remaining interest. The transaction is expected to be
completed by May 2023. 
  
($1 = 1.4535 Australian dollars)
 (Reporting by Jaskiran Singh in Bengaluru; Editing by Paul
Simao)
 ((Jaskiran.Singh@thomsonreuters.com;))