Albemarle Announces Proposal to Acquire Liontown
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Overall Analyst Rating:
NEUTRAL ( Up)
Dividend Yield: 1.3%
Revenue Growth %: -50.8%
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Proposal Represents All-Cash Offer at
Albemarle believes the proposal is a compelling opportunity for Liontown shareholders with the per share consideration representing a substantial premium to Liontown shareholders and a material premium over relevant benchmarks:
- 63% premium to Liontown's closing share price on
March 27, 2023 - 69% premium to the 30-day VWAP
- 184% premium to the 52-week low share price
- 41% premium to the median broker price target
To highlight a commitment to the transaction, Albemarle has accumulated a less than 5% stake in Liontown stock as of
Albemarle notes that the Liontown Board has not meaningfully engaged with Albemarle to facilitate its shareholders receiving the benefits of the proposal. Albemarle believes this is a compelling opportunity for Liontown shareholders and that Liontown's Board should immediately engage with Albemarle to facilitate a binding offer to be put to its shareholders for their consideration.
Albemarle believes this offer provides enhanced liquidity and accelerates the realization of incremental value for Liontown shareholders beyond what might otherwise be expected from share price performance over the next few years and without the operating, market, financial and other risks that could impact the value of Liontown. Albemarle has submitted this attractive cash offer in advance of Liontown's completion of the
As a leading supplier of battery grade lithium products, Albemarle is well positioned in
Albemarle remains committed to acting in the best interests of its shareholders and based on publicly available information, is confident the potential transaction is consistent with the Company's long-term growth strategy and disciplined approach to capital allocation and risk-adjusted value accretion. Pro forma for this potential transaction Albemarle will maintain a strong balance sheet and an expected net leverage of approximately 1.5x 2.
This offer was unanimously approved by Albemarle's Board of Directors. Albemarle's proposal to Liontown represents a non-binding proposal which is subject to, among other things, the execution of definitive transaction documentation and completion of customary due diligence.
Albemarle is prepared to engage immediately in discussions with Liontown to work toward a mutually acceptable definitive agreement and is ready to devote all necessary resources to finalize the documentation on an expeditious basis.
J.P. Morgan is serving as financial advisor and
About Albemarle
Albemarle regularly posts information to its website, including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations,
Forward-Looking Statements
This press release contains statements concerning our expectations, anticipations, intentions, beliefs, or strategies regarding the future, which constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results, conditions and events to differ materially from those anticipated, often contain words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "would," "will" and variations of such words and similar expressions. Forward-looking statements may include, without limitation, the outcome of any discussions between
1 Based on an AUD/USD exchange rate of 0.6642 as at
2 Based on Albemarle's balance sheet and trailing-twelve-month adjusted EBITDA as of
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