Chilean lithium giant SQM and its advisers were busy assessing their options on Monday with its agreed $1.6bn buyout deal with Azure Minerals now looking almost certain to fail.
Chris Ellison, through his Mineral Resources, has gained 12.29 per cent, as the company revealed via a substantial shareholder notice lodged late on Friday. And with Gina Rinehart holding 18.9 per cent, that’s enough to see a vote for an acquisition by SQM via a scheme of arrangement fail.
Add to the mix Mark Creasy, who was undecided on the deal when it was announced, and that’s another 13.2 per cent.
Yet Azure Minerals shares on Monday still closed above SQM’s offer at $3.85. SQM is offering $3.52 a share, or $3.50 a share by way of a takeover bid.
The question is whether SQM now sells its controlling 19.9 per cent, with few sellers of shares on the register making it tough for it to get to more than 40 per cent.
After SQM announced an agreed deal to buy the lithium company for $1.6bn, Mrs Rinehart raided the stock.
After Mrs Rinehart secured more than 18 per cent, her company Hancock Prospecting said in a statement it had achieved its strategic objective.
It came after a move to secure 19.9 per cent of Liontown Resources prompted US-based suitor Albemarle to abandon its $6.6bn buyout plans.
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