Altura knocks back takeover and goes all in on lithium; shares climb 5pc
Lithium explorer Altura Mining has knocked back a potential reverse takeover, saying its existing strategy will deliver more value for shareholders.
A reverse takeover is typically when a private company buys a controlling stake in a public company to achieve a stockmarket listing without an initial public offering.
In mid-March Altura (ASX:AJM) was asked by Shaanxi J&R Optimum Energy — a Chinese company that makes car battery products and is listed on the Shenzen Stock Exchange — to consider a potential control transaction.
Altura said at the time that discussions were preliminary, noting “there is no certainty that any transaction will proceed, and if so, on what terms”.
Today Altura put the nail in the coffin, saying that after an extensive evaluation period “any change of control would be unlikely to deliver an appropriate valuation outcome for shareholders”.
Shareholders seemed to support the notion, lifting Altura 5 per cent to 28.5c in early Thursday trade.
Altura gave two reasons for knocking back the approach: depressed market sentiment towards listed lithium stocks and its focus on commissioning its Pilgangoora project under the existing ownership structure.
Pilgangoora is an open-pit lithium mine in development about 120km from the town of Port Hedland.
Altura says it has now suspended “any activity regarding any control transaction”.
Altura has been approached for comment.