Liontown Resources Rejects $3.7 Bln Buyout Offer From Albemarle

(RTTNews) - Australian lithium miner Liontown Resources (LTR.AX) has rejected a US$3.7 billion or A$5.5 billion takeover proposal from Albemarle Corp. (ALB), saying that it materially undervalues the company.

Albemarle confirmed that it submitted a non-binding proposal to acquire all outstanding shares of Liontown by way of scheme of arrangement for A$2.50 or US$1.66 per share in cash.

Liontown said the indicative proposal followed careful consideration and rejection of earlier non-binding indicative proposals received from Albemarle at A$2.35 per share on 3 March 2023, and A$2.20 per share on 20 October 2022.

Albemarle alleged on Monday that the Liontown Board has not meaningfully engaged with Albemarle to facilitate its shareholders receiving the benefits of the proposal.

Albemarle believes this is a compelling opportunity for Liontown shareholders and that Liontown's Board should immediately engage with Albemarle to facilitate a binding offer to be put to its shareholders for their consideration.

Albemarle said it has accumulated a less than 5% stake in Liontown stock as of March 27, 2023, through on-market purchases.