Rinehart's Hancock Prospecting, SQM agree offer for Azure Minerals
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The news: Gina Rinehart's Hancock Prospecting has teamed up with Chilean lithium giant SQM to buy ASX-listed lithium and nickel miner Azure Minerals for $1.7 billion.
The Azure board unanimously recommended shareholders accept the offer and entered into a transaction implementation deed with Hancock and Sociedad Quimica y Minera de Chile SA (SQM).
The numbers: Shareholders would receive $3.70 per share if they accept the offer.
This value is more than 60% higher than the 10-day volume weighted average price of Azure shares prior October 20. This was just before SQM made a standalone offer for the miner.
If the $3.70 per share offer is unsuccessful, Hancock and SQM have proposed an off-market takeover offer of $3.65 per share.
The context: There appears little opposition to the bid, given Hancock and SQM are the largest shareholders and have 37.8% of the stock.
Two other major shareholders, Creasy Group (12.8%) and Delphi Group (10.2%), have decalred support for the offer.
Azure owns most of the Andover lithium project in Western Australia.
The sources: Azure Minerals, Hancock Prospecting
