Bacanora Lithium receives formal takeover offer from Ganfeng Int’l

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Bacanora Lithium PLC has agreed terms of its takeover by major shareholder Ganfeng International following approval for the deal by the authorities in China.


As flagged when the original approach was made in May, Ganfeng is offering 67.5p cash for each Bacanora share.


Shareholders will also get 0.236 shares in Europe-based lithium group Zinnwald, worth 6.1p currently, to take the total value of the offer to 73.6p.


Bacanora’s independent directors intend to recommend unanimously that shareholders accept the offer, said the statement.


Ganfeng already holds a 29% stake in the business, while M&G Recovery has also said it will accept in respect of its 13.7% holding.


Mark Hohnen, Bacanora’s chairman said: “We are pleased that Bacanora and Ganfeng have been able to work together efficiently to satisfy the pre-conditions and reach an agreement on the terms of a formal offer.


“The offer allows Bacanora shareholders to realise their investment in cash and at a significant premium to the undisturbed share price.


“In addition, we are pleased to have agreed that shareholders will maintain an exposure to the lithium industry by retaining an interest in a highly prospective quoted lithium project, through the Zinnwald distribution.”

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