Lepidico has formally rejected rival Lithium Australia’s $23.8 million takeover bid, after an independent expert labelled the offer as neither fair nor reasonable.
Joe Walsh-led Lepidico released its target’s statement in response to Lithium’s offer of one share for every 13.25 Lepidico shares, with the board unanimously rejecting the offer and telling shareholders to take no action.
Despite this, Lepidico stakeholder Parkway Minerals today completed the sale of its 97 million shares in the target.
Parkway is chaired by Lithium managing director Adrian Griffin.
BDO Corporate Finance was hired by Lepidico to review the offer as an independent expert, and formed the view that the fair value of Lepidico shares was between 1.6 cents and 2.1 cents, while the value of 13.25 Lepidico shares was estimated at between 21.1 cents and 27.8 cents.
At the close of trade today, Lithium shares were worth 14 cents each.
“After careful review of the Lithium Australia offer, including engagement of an independent expert, the independent directors are of the unanimous view that the offer is inadequate and should be rejected by all Lepidico shareholders,” Lepidico chairman Gary Johnson said in a statement.
Lepidico shares were 7.1 per cent higher to 1.5 cents each at the close of trade.