‘The big news in lithium land today is that Essential Metals (ASX:ESS) has received a takeover offer from Tianqi Lithium Energy Australia (TLEA), a joint venture between China’s Tianqi Lithium and ASX listed giant IGO (ASX:IGO).
IGO and Tianqi own 51% of the Greenbushes mine in WA’s South West, the world’s largest and highest grade lithium operation, and hit commercial production at their 100% owned lithium hydroxide plant in Kwinana late last year.
The $136 million, 50c per share scheme of arrangement has been recommended by ESS’ board at a 44.9% premium to its closing price of 34.5c per share on January 6.
It’s chump change for US$19 billion Hong Kong and Shenzhen listed Tianqi and $10.5b nickel and lithium miner IGO – but suggests producers are willing to pay a premium to get their hands on spodumene at a time when lithium raw materials are more important than ever.’
WIN Price at posting:
35.0¢ Sentiment: Buy Disclosure: Held
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