China's Ganfeng to acquire Millennial Lithium for C$353 million
(Kitco News) - Millennial Lithium (TSXV:ML) announced today that it has entered into a definitive arrangement agreement with Ganfeng Lithium pursuant to which Ganfeng, through a British Columbia subsidiary, will acquire all of the outstanding common shares of Millennial for CAD $3.60 per common share in cash representing total cash consideration of approximately C$353 million.
According to the company’s statement, the purchase price represents significant premium of approximately 21% over the twenty-day average closing price of $2.98 for the common shares on the TSX Venture Exchange.
Millennial, which owns 100% of the Pastos Grandes lithium project in Argentina, said that the company’s board and management believe that the arrangement with Ganfeng provides a very attractive opportunity for Millennial’s shareholders to realize full liquidity at a substantial premium to the current share price.
The company added that Ganfeng, the world's largest lithium metal producer, would bring significant technical lithium expertise to Pastos Grandes gained through their partnership with Lithium Americas at Cauchari and other projects worldwide.
Millennial pointed out that, subject to certain conditions, including the parties obtaining the requisite regulatory approvals, the arrangement is expected to close in the fourth quarter of 2021.
Upon closing of the arrangement, the securities of Millennial are expected to be concurrently delisted from the TSX Venture Exchange.