Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>After <a href="https://www.smartkarma.com/entities/mineral-resources-ltd" target="_blank" data-smartkarma-citation="entities:15103:1" rel="noopener">Mineral Resources (MIN AU)</a> and other shareholders voted against the Tianqi Lithium JV transaction for <a href="https://www.smartkarma.com/entities/essential-metals-ltd" target="_blank" data-smartkarma-citation="entities:9645:1" rel="noopener">Essential Metals (ESS AU)</a>, <a href="https://www.smartkarma.com/entities/develop-global-ltd" target="_blank" data-smartkarma-citation="entities:19413:1" rel="noopener">Develop Global (DVP AU)</a> swooped and announced a binding Scheme.</li>
<li>The all-scrip Scheme transaction has the backing of MinRes, who also owns a ~12.8% stake in Develop.</li>
<li>The Scheme Booklet is now out. Essential shareholders vote on the transaction on the 18 October, with implementation on the 6 November. The IE opines "not fair but reasonable". </li>
</ul>


After Mineral Resources (MIN AU) and other shareholders voted against the Tianqi Lithium JV transaction for Essential Metals (ESS AU), Develop Global (DVP AU) swooped and announced a binding Scheme.
The all-scrip Scheme transaction has the backing of MinRes, who also owns a ~12.8% stake in Develop.
The Scheme Booklet is now out. Essential shareholders vote on the transaction on the 18 October, with implementation on the 6 November. The IE opines "not fair but reasonable". 


Essential Metal: Shareholder Vote On 18th Oct. The IE Says Not Fair

<ul>
<li>At the 20 April Scheme Meeting, <a href="https://www.smartkarma.com/entities/mineral-resources-ltd" target="_blank" data-smartkarma-citation="entities:15103:1" rel="noopener">Mineral Resources (MIN AU)</a> (with 19.55%) and other shareholders voted against the Tianqi Lithium JV transaction for <a href="https://www.smartkarma.com/entities/essential-metals-ltd" target="_blank" data-smartkarma-citation="entities:9645:1" rel="noopener">Essential Metals (ESS AU)</a>. </li>
<li>This left Essential in no man's land until MinRes (presumably) made a move. But on the 3 July, <a href="https://www.smartkarma.com/entities/develop-global-ltd" target="_blank" data-smartkarma-citation="entities:19413:1" rel="noopener">Develop Global (DVP AU)</a> announced a binding Scheme with ESS.</li>
<li>The all-scrip Scheme transaction has the backing of MinRes, which also owns a <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02680585-6A1155937?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">~13% stake</a> in Develop. This deal - this time- looks all stitched up.</li>
</ul>


At the 20 April Scheme Meeting, Mineral Resources (MIN AU) (with 19.55%) and other shareholders voted against the Tianqi Lithium JV transaction for Essential Metals (ESS AU). 
This left Essential in no man's land until MinRes (presumably) made a move. But on the 3 July, Develop Global (DVP AU) announced a binding Scheme with ESS.
The all-scrip Scheme transaction has the backing of MinRes, which also owns a ~13% stake in Develop. This deal - this time- looks all stitched up.


Essential Metals/Develop Global: Rock Steady With MinRes Support

<ul>
<li>On the 9th Jan, lithium player <a href="https://www.smartkarma.com/entities/essential-metals-ltd" target="_blank" data-smartkarma-citation="entities:9645:1" rel="noopener">Essential Metals (ESS AU)</a> entered into a Scheme with Tianqi Lithium JV, comprising <a href="https://www.smartkarma.com/entities/tianqi-lithium-corporation" target="_blank" data-smartkarma-citation="entities:27789:1" rel="noopener">Tianqi Lithium (9696 HK)</a> (51%) and <a href="https://www.smartkarma.com/entities/igo-ltd" target="_blank" data-smartkarma-citation="entities:462:1" rel="noopener">IGO Ltd (IGO AU)</a> (49%). </li>
<li>Shortly before the 20 April Scheme Meeting, <a href="https://www.smartkarma.com/entities/mineral-resources-ltd" target="_blank" data-smartkarma-citation="entities:15103:1" rel="noopener">Mineral Resources (MIN AU)</a> announced a 19.55% stake. </li>
<li>A Scheme failure was expected. And 68.47% voted against the transaction. The question is - now what? </li>
</ul>


On the 9th Jan, lithium player Essential Metals (ESS AU) entered into a Scheme with Tianqi Lithium JV, comprising Tianqi Lithium (9696 HK) (51%) and IGO Ltd (IGO AU) (49%). 
Shortly before the 20 April Scheme Meeting, Mineral Resources (MIN AU) announced a 19.55% stake. 
A Scheme failure was expected. And 68.47% voted against the transaction. The question is - now what? 


Essential Metals In Limbo As MinRes Lurks

<ul>
<li>This makes life a lot simpler. Gina Rinehart’s Hancock Prospecting will now team up with Chile’s <a href="https://www.smartkarma.com/entities/sociedad-quimica-y-minera-de-chile-sa" target="_blank" data-smartkarma-citation="entities:27977:1" rel="noopener">SQM</a> to take control of lithium play <a href="https://www.smartkarma.com/entities/azure-minerals-ltd" target="_blank" data-smartkarma-citation="entities:16538:1" rel="noopener">Azure Minerals (AZS AU)</a>.</li>
<li>In a<a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02755714-6A1187098" target="_blank" rel="noopener"> binding Offer</a>, by way of a Scheme, the joint bidders (collectively holding ~37.79%) are offering A$3.70/share, a 5.1% bump in terms to SQM's prior Scheme Offer. </li>
<li>
An off-market takeover at A$3.65/share unfolds IF this Scheme were to fail. If both fail/lapse,  SQM will, "in certain circumstances", be required to proceed with its off-market transaction of A$3.50/share.</li>
</ul>


This makes life a lot simpler. Gina Rinehart’s Hancock Prospecting will now team up with Chile’s SQM to take control of lithium play Azure Minerals (AZS AU).
In a binding Offer, by way of a Scheme, the joint bidders (collectively holding ~37.79%) are offering A$3.70/share, a 5.1% bump in terms to SQM's prior Scheme Offer. 

An off-market takeover at A$3.65/share unfolds IF this Scheme were to fail. If both fail/lapse,  SQM will, "in certain circumstances", be required to proceed with its off-market transaction of A$3.50/share.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/livent-corp" target="_blank" data-smartkarma-citation="entities:27434:1" rel="noopener">Livent (LTHM US)</a>'s CEO recently said, regarding its merger with <a href="https://www.smartkarma.com/entities/allkem-ltd" target="_blank" data-smartkarma-citation="entities:3572:1" rel="noopener">Allkem Ltd (AKE AU)</a>, that while falling lithium prices put pressure on marginal producers, the sector's fundamental outlook remains strong. </li>
<li>And so, another week goes by, and another lithium Offer Down Under unfolds. </li>
<li>African-Focused lithium play <a href="https://www.smartkarma.com/entities/atlantic-lithium-ltd" target="_blank" data-smartkarma-citation="entities:40322:1" rel="noopener">Atlantic Lithium (A11 AU)</a> announced this morning it has twice rejected Offers from South African-based Assore International, its major shareholder.  Shares spiked 43% on the news.</li>
</ul>



Livent (LTHM US)'s CEO recently said, regarding its merger with Allkem Ltd (AKE AU), that while falling lithium prices put pressure on marginal producers, the sector's fundamental outlook remains strong. 
And so, another week goes by, and another lithium Offer Down Under unfolds. 
African-Focused lithium play Atlantic Lithium (A11 AU) announced this morning it has twice rejected Offers from South African-based Assore International, its major shareholder.  Shares spiked 43% on the news.


Atlantic Lithium (A11 AU) Knocks Back Major Shareholder's Offer. Again

Australia

Essential Metals Limited operates as an active exploration and development company. The Company focuses on discovering and producing metals essential such as gold, lithium, caesium, and nickel. Essential Metals serves clients in Australia.

Essential Metals (ESS AU)

Essential Metal: Shareholder Vote On 18th Oct. The IE Says Not Fair

This is done. MinRes's support - and holding in both companies - all but blocks a competing Offer. I'd be long Essential, short Develop here....

David Blennerhassett

Essential Metals/Develop Global: Rock Steady With MinRes Support

This looks done. Trading wide at a gross/annualised spread of 10.5%/44.7%. If you can take down borrow cheaply, I'd be long Essential, short...

David Blennerhassett

Essential Metals In Limbo As MinRes Lurks

MinRes paid above the A$0.50/share takeover price. But I'd avoid the stock here. There is no firm Offer and it is illiquid. If the shares close in...

David Blennerhassett

Gina Joins SQM In Bid For Azure (AZS AU)

This is done. Trading super tight at A$3.68/share as I type. If in, stay in. Alternatively get involved on any material pull-back.

David Blennerhassett

Atlantic Lithium (A11 AU) Knocks Back Major Shareholder's Offer. Again

If small, illiquid M&A plays are your thing, I'd probably be picking up shares here. I think Assore will bump. Or second-largest shareholder...

David Blennerhassett