Neil Herbert, CEO of Atlantic Lithium Ltd (AIM: OTCQX, ASX: ALL), has expressed his approval regarding the recent increase in shares held by major investor Assore International. Assore’s stake in Atlantic Lithium has risen from 25.06% to 28.4%. Additionally, Piedmont Lithium, listed on ASX and OTC as PLL and PLLTL, has also acquired a significant 5.2% share in the company.
Herbert commented, “Assore, as our principal shareholder, has demonstrated their confidence in the inherent value of Atlantic Lithium by acquiring additional shares at a rate higher than the current market price, elevating their ownership to 28.4%. This move, along with Piedmont’s involvement, is a strategic step towards realizing the potential of the Ewoyaa lithium project.”
Stockbroker SP Angel recently pointed out that Assore’s latest acquisition of shares might indicate a strategic move. The firm recalled that Assore had previously made two unsuccessful offers to buy Atlantic Lithium at 33p per share, which were declined by the lithium company’s board.
SP Angel speculated, “It appears that Assore is gearing up for another attempt to acquire Atlantic Lithium and may be positioning itself as a more prominent figure in the lithium production and processing sector.”
The broker also noted concerns among UK investors about Assore potentially exceeding a 30% stake. However, they clarified that UK takeover rules do not apply in this instance. Assore has adhered to the 3% ‘creep provision’, which permits incremental share purchases every six months.
