Alpha Lithium (NEO:ALLI) said today that it is reviewing Tecpetrol latest bid for Alpha, announced last week.
Tecpetrol made its first offer last month. A second was bid was announced on June 2.
Alpha said the latest offer price represents a discount to the current 10-day weighted average price of $1.27 per share and a premium of only 7.8% to the share price immediately prior to Tecpetrol’s May 22, 2023, announcement.
"Tecpetrol first made an unsolicited non-binding offer on May 15, 2023, which was reviewed by the entire Board and rejected after determining the bid to be opportunistic with a low and declining premium to the share price, and not in the best interests of Alpha Lithium shareholders," wrote Alpha Lithium in a news release. "Subsequently, on June 2, 2023, Tecpetrol announced its intention to take the same undervalued bid directly to shareholders via a formal takeover bid offer, from a subsidiary of Tecpetrol."
"As indicated in Tecpetrol’s press release, Alpha Lithium has been involved in an ongoing and comprehensive process to explore the potential sale of its Tolillar asset. Tecpetrol was invited to participate in this process but, rather than engage in constructive discussions, Tecpetrol refused to sign an industry-standard non-disclosure agreement and instead elected to disrupt an otherwise orderly sale process."
Alpha is up 34% this month to 98 cents.
