Ganfeng Lithium clears way to make formal takeover bid for Bacanora Lithium

by John Shepherd
Feeding a pilot plant at the Ganfeng-Bacanora Sonora Lithium Project in Mexico with ore samples. Photo: Bacanora
China’s Ganfeng Lithium has given the green light for a firm bid to be made to acquire London-listed Bacanora Lithium for $264.5m (about £191m).

Bacanora confirmed in a statement that the go-ahead for a "possible offer” – originally made last month – had been given at a Ganfeng extraordinary general meeting.

However, the deal for Ganfeng to acquire shares it does not already own remains subject to a number of pre-conditions, which could still take several months to be met, Bacanora said.

"There can be no certainty that a firm offer will be made even if the pre-conditions are satisfied or waived,” Bacanora said.

'Attractive offer'

Under the terms of its May 2021 offer, Ganfeng proposed to acquire the remaining shares in Bacanora at 67.5p per share. The offer came after Ganfeng approved a board proposal, earlier this year, to increase its stake in Bacanora to nearly 29%.

Bacanora’s directors have said they considered the May offer as "attractive” and intended to recommend the takeover deal to its shareholders once it became a formal proposal.

Ganfeng and Bacanora are currently 50-50 owners of Sonora Lithium – the operational holding company for the Sonora Lithium Project in Mexico.

Ganfeng is a leading Chinese lithium mining company that has evolved into the refining and processing of lithium, battery manufacturing and recycling.

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