Important to remember that these investments (Ganfeng and...

Important to remember that these investments (Ganfeng and Banchak) are equity in LAC rather than a stake directly in Exar. My tally on the ultimate positions (once the JEMSE LOI is implemented) is as follows
SQM direct interest in Exar 45.75%
LAC direct interest in Exar 45.75%
JEMSE direct interest in Exar 8.5%

Then to the indirect interests via equity in LAC
Ganfeng's 19.9% translates to a 9.1% indirect interest and their offtake right amounts to about 8006 tons at stage 1 nameplate
Bangchak's 16.4% is a 7.5% indirect interest and the offtake right amounts to 1,715 tons.

With a combined 36% and two directors on the LAC board these two companies are in the drivers seat on the LAC side but I think the Cauchari operations will be run by SQM.

Why have they gone after LAC rather than ORE?

Although I have discounted it in terms of valuation, I think offtake rights have determined the target. LAC's tons were uncommitted whereas the Olaroz stage 1 deal sees TTC with exclusive agency rights over 100% of the production for a ten year period.

Olaroz Stage 2 offtake is yet to be confirmed. With the equity for stage 2 being funded from cashflow and TTC able to bring in the bankers with low cost debt finance, I think it is unlikely we would see a different arrangement on stage 2.

Then there are the pre-emption rights over SDJ SA. "The agreement also provides the parties with pre-emptive rights on each other interests in the event of a sale." Although it is not stated in the Oct 17, 2012 announcement, I would guess it is very likely that there is a similar preemption right in the event of a change of control (ie takeover of ORE).

Then there are the other assets, chief amongst them Cauchari. With the AAL deal, the interest and the control over Cauchari are diluted. I think this makes the preemption right over Olaroz more significant. I'm still waiting to see if AAL can get their funding away. I would shed no tears if that deal fell over. I would have preferred to see ORE retain control over Cauchari - it is a wonderful bargaining point.

All of this doesn't mean to say that we might not see takeover interest, just that it is likely to come from left field and has to be a party that TTC can live with. That pretty much rules out their competitors - more likely a substantial consumer of lithium, or a company from outside the industry that wants in, imo. Maybe even TTC themselves if there is a view beyond the initial ten years of offtake rights.

Just my thoughts. I'm not looking for a takeover but I am encouraged by the valuations that the LAC deals suggest.