Lepidico survives takeover attempt

A hostile acquisition attempt aimed at junior explorer Lepidico has passed deadline with minimal acceptances and will not go ahead, the takeover target says.

Perth-based Lepidico said this morning that the “ill-conceived and inadequate” scrip offer put forward by rival Lithium Australia closed at midnight, with acceptances of only 0.6 per cent of Lepidico shares excluding pre-bid acceptances by parties related to Lithium Australia.

“Lithium Australia’s offer, which was not recommended by the Lepidico board and which the independent expert, BDO, concluded was neither fair nor reasonable to Lepidico shareholders, has been unsuccessful,” Lepidico said.

“In accordance with ASX rules, the company will provide a top-20 shareholder list and distribution schedule within 10 business days.”

Lithium Australia lodged its $24 million all-scrip takeover bid for Lepidico in February, offering one of its shares for every 13.25 Lepidico shares.

Shareholders owning about 18 per cent of Lepidico shares entered into pre-bid acceptances at the time; that included ASX-listed Parkway Minerals, which is chaired by Lithium Australia managing director Adrian Griffin.

Parkway completed the sale of its 97 million Lepidico shares as part of the takeover attempt in March.

Lepidico shares were 6.2 per cent lower to 1.5 cents each at 10am.

Lithium Australia shares were 2.3 per cent lower to 8.4 cents each.