The merger was officially approved, and the market value soared by 123.7 billion! The global "Lithium King" is born!
According to the British "Financial Times" report, British listed company Bacanora Lithium has agreed to Ganfeng Lithium’s 284.8 million euro cash offer, which will enable Ganfeng Lithium to obtain control of a mine in Mexico.
Bacanora owns the Sonora lithium project in Mexico, which will be put into production in 2023. The project is located 170 kilometers south of the U.S. border and is in a favorable position to supply the U.S. automotive market.
Sonora Pilot Plant
Ganfeng Lithium said it has received the support of Bacanora's second largest shareholder, M&G, which holds a 14% stake in Bacanora. Ganfeng Lithium has previously held 29% of Bacanora's shares, and it needs 50% of shareholders to support this transaction.
As early as May, Ganfeng’s bid of 67.5 pence per share for Bacanora was opposed when it was first announced. Some shareholders stated that Ganfeng underestimated the value of Bacanora, even though Ganfeng’s bid was lower than Bacanora’s bid on May 5. There is a 50% premium to the closing price.
On August 25, Bacanora Chairman Mark Hohnen said: "We are very pleased that Bacanora can effectively cooperate with Ganfeng Lithium and have reached an agreement on the terms of the formal acquisition offer."
Bacanora also said that as part of the transaction, its shareholders will now also receive shares in Zinnwald Lithium, which is listed on the London Alternative Investment Market, in which Bacanora holds 36%. Bacanora said that with these stocks, the premium will rise to 63%.
Zinnwald Lithium Project
Zinnwald, with a market value of 66 million euros, is developing a lithium mine in Germany, 35 kilometers from Dresden. Zinnwald said in a statement that the company looks forward to continuing cooperation with potential new shareholders.
This transaction will be the latest acquisition of Ganfeng Lithium. Last month, Ganfeng Lithium acquired Canadian Millennium Lithium for 343 million Canadian dollars, which has a project in Argentina. In June this year, Ganfeng Lithium also spent US$130 million to acquire a 50% stake in the Goulamina Lithium Mine in Mali. Since the beginning of this year, the share price of Ganfeng Lithium has risen 86%.
An index compiled by the UK's Benchmark Mineral Intelligence shows that the price of lithium carbonate has doubled this year. Analysts also predict that as sales of electric vehicles continue to grow, there will be a shortage of lithium materials in the next few years.
Ganfeng Lithium is a veritable "Lithium King", and it currently owns 8 high-quality lithium resources directly or indirectly on a global scale. The details are as follows:
1. Owns 50% equity of Mount Marion spodumene mine (current production 400,000 tons/year) in Australia, and 6.33% equity of Pilbara Pilgangoora spodumene mine;
2. Owns Cauchari-Olaroz lithium salt lake in Argentina ( The amount of brine water resources is approximately 24.58 million tons (LCE) 51% equity, 88.75% equity in Mariana Lithium Salt Lake;
3. Owns 50% of Sonora Lithium Clay in Mexico;
4. Owns 55% of Avalonia Spodumene Mine in Ireland 5.
In China, it owns 100% of the Ningdu Heyuan Spodumene Mine and 100% of the Fenghuangtai Deep Brine Lithium Mine of Qinghai Mangya Administrative Committee. In addition, on July 17, Ganfeng International, a wholly-owned subsidiary of Ganfeng Lithium, made another tender offer for the Canadian Millennial, which holds 100% equity in the PastosGrandes lithium salt lake project and the Cauchari East lithium salt lake project.
It can be seen that Ganfeng Lithium's lithium resource equity reserves have once again greatly increased. Western Securities stated that Ganfeng Lithium has established a vertically integrated business model that integrates upstream resource development, midstream lithium salt production, downstream batteries and recycling, and has a diversified lithium salt product layout. As of the close of August 27, Ganfeng Lithium reported 196.35 yuan/share, up 8.25 yuan/share or 4.39%, and the total market value came to 282.2 billion yuan. Compared with the total market value of 158.5 billion yuan at the close of trading on August 12, it has skyrocketed by 123.7 billion yuan in half a month. In terms of performance, on July 14th, Ganfeng Lithium revised its 2021 semi-annual performance forecast. Before the revision, the net profit attributable to shareholders of listed companies was between 800 million yuan and 1.2 billion yuan. After the revision, it was significantly increased to 13. Between 100 million yuan and 1.6 billion yuan.
Source: Tonghuashun Finance, SMM, Weike.com Lithium Battery, etc.