Lithium Australia is pushing ahead with its takeover plans for Lepidico, extending the deadline by two weeks despite only a small portion of the target’s shareholders taking up the offer so far.
Lithium said it had extended the $23.8 million offer period to May 5, after passing an original deadline at 12am today.
The extension comes a week after Lepidico managing director Joe Walsh shot down Lithium’s offer, telling Business News it was inadequate, had failed to capture the interest of Lepidico’s shareholders, and should be aborted.
As of last week, Lithium had received total acceptances of 18.02 per cent, which includes its own holding in Lepidico (of about 17.7 per cent), coupled with pre-bid acceptances.
About 56 other Lepidico shareholders had taken up the offer, representing 0.26 per cent.
Lepidico shares were unchanged at 1.4 cents each at the close, while Lithium shares were 3.8 per cent higher to 13.5 cents each.