Altura Mining has decided not to pursue a takeover from its largest shareholder, after its corporate adviser Citigroup began investigating a potential transaction in April.
In March, lithium-focused Altura said it was in discussions with Chinese battery manufacturer Shaanxi J & R Optimum Energy, which holds a 19 per cent interest in the company, about the possibility of a control transaction.
The company appointed Citigroup as its corporate adviser to investigate a potential takeover in April.
Altura currently has a market capitalistion of about $500 million.
Altura said today it had assessed the option and decided against a transaction.
“The board of Altura has determined that on account of prevailing market sentiment towards listed lithium companies and the fact Altura is commissioning Pilgangoora and transitioning from a development to production company, any change of control transaction would be unlikely to deliver an appropriate valuation outcome for our shareholders,” he said.
“Consequently, Altura has determined to suspend any activity regarding any control transaction allowing the directors and management to concentrate on ramping the Pilgangoora project up to full production over the coming months.”
Shares in Altura were up 1.85 per cent at 28 cents each at 12.30pm AEDT.