Australia’s Azure Minerals Ltd said on Thursday it had agreed to a takeover offer from Chilean mining giant Sociedad Química y Minera de Chile (SQM), in a deal implying an equity value of A$1.63 billion ($1.03 billion) for the lithium producer.
Azure, which owns around 60% stake in the highly prospective Andover lithium project in Western Australia’s Pilbara region, had previously rejected a buyout bid from SQM that valued the miner at A$901.4 million.
Under the new proposed deal, SQM agreed to acquire all of Azure’s shares at an offer price of A$3.52 per share, a premium of 44.3% to the stock’s last close of A$2.44 on Friday.
The world’s second-biggest lithium chemicals maker, which is partnering with Australian conglomerate Wesfarmers to build the A$1.9 billion Mt Holland lithium hydroxide project in Western Australia, bought a 19.99% equity in Azure for A$20 million in March.
“Azure Board unanimously recommend that Azure shareholders support the transaction by voting in favour of the scheme… in the absence of a superior proposal,” the company said in a statement.
