Atlantic Lithium Ltd (AIM: ALL, OTCQX: ALLIF, ASX: A11) might be on the verge of receiving a new bid following the increase in ownership by major shareholder Assore, which now holds 28.4%.
Despite the lithium company’s board previously rejecting two offers from Assore at 33p per share, SP Angel interprets this recent share acquisition as a sign of another potential bid.
SP Angel speculates that Assore is gearing up for another attempt to acquire Atlantic Lithium, possibly aiming to expand its role in the lithium production and processing sector.
There are concerns among UK investors about Assore possibly exceeding the 30% threshold, although UK takeover rules are not applicable in this situation. Assore has adhered to the 3% creep provision, allowing a maximum purchase every six months.
Piedmont Lithium sold its stake to Assore for US$7.8 million, a move aimed at strengthening its cash reserves. This sale, according to SP Angel, is likely to support Piedmont’s joint venture in North American lithium.
Following this transaction, Piedmont’s share in Atlantic Lithium has decreased to 5.2%. However, Piedmont assures that this sale will not affect their joint venture with Atlantic at Ewoyaa in Ghana, including their earn-in status and offtake agreements.
Assore, a South African mining group, is known for its extensive experience in Africa.
Following these developments, Atlantic Lithium’s shares saw a slight gain of 0.23%, settling at 21.8p.
