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Albemarle (ALB) Makes Revised Offer for Liontown Resources
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Albemarle Corporation (ALB - Free Report) , a global leader in supplying essential elements for mobility, energy, connectivity, and health, has officially announced its intent to pursue a binding agreement to acquire Liontown Resources Limited.
Albemarle acknowledges Liontown's announcement on the ASX and confirms that it has submitted a best and final non-binding proposal, pending the absence of a better offer, to acquire all outstanding shares of Liontown through a scheme of arrangement at A$3 cash per share. This revised proposal values Liontown at A$6.6 billion or $4.3 billion in equity value.
This proposal is contingent upon specific conditions, including successful confirmatory due diligence by Albemarle, the execution of a binding scheme implementation deed (SID) subject to Australian regulatory approvals and Liontown shareholder consent, and final approval from Albemarle's board to proceed with the transaction on a binding basis. Albemarle's Board of Directors has unanimously approved this revised proposal.
If the acquisition proceeds following successful due diligence and SID negotiation, it will strengthen Albemarle's Energy Storage business, leveraging its substantial resource base. Additionally, it will expand Albemarle's footprint in Australia, where it possesses significant expertise and world-class lithium resources and conversion facilities. This move will help Albemarle meet the increasing demand for lithium driven by electric vehicles and other emerging markets while maintaining a solid financial position with an expected net leverage of approximately 1.2x.
The Liontown Board has expressed willingness to grant Albemarle an exclusive period for due diligence, subject to standard fiduciary conditions and signing a mutually agreeable non-disclosure and exclusivity agreement. If Albemarle presents a binding proposal at $3.00 per share, the Liontown Board will unanimously recommend it to Liontown shareholders, provided there are no superior offers and subject to the completion of satisfactory due diligence by Albemarle and ongoing endorsement by an independent expert that the revised proposal is in the best interests of Liontown shareholders.
Albemarle and Liontown are expected to engage in a mutually agreeable non-disclosure and exclusivity agreement, providing Albemarle with an exclusive timeframe for conducting confirmatory due diligence and negotiating a binding SID. It's important to note that the revised proposal is not legally binding. There is no certainty regarding the completion of the transaction.
For this transaction, Albemarle has engaged J.P. Morgan as its lead financial advisor, with Barrenjoey also serving as a financial advisor, while Corrs Chambers Westgarth and Shearman & Sterling LLP are providing legal counsel.
The earnings estimate for Carpenter Technology’s current year is pegged at $3.48, indicating a year-over-year growth of 205%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 10%. The company’s shares have rallied 97.1% in the past year.
The consensus estimate for Akzo Nobel’s current-year earnings is pegged at $1.44, indicating year-over-year growth of 67.4%. In the past 60 days, AKZOY’s current-year earnings estimate has been revised upward by 2.9%. The company’s shares have rallied 31.7% in the past year.
The consensus estimate for Hawkins’ current-year earnings is pegged at $3.40, indicating year-over-year growth of 18.9%. HWKN beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have rallied 66% in the past year.
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Albemarle (ALB) Makes Revised Offer for Liontown Resources
Albemarle Corporation (ALB - Free Report) , a global leader in supplying essential elements for mobility, energy, connectivity, and health, has officially announced its intent to pursue a binding agreement to acquire Liontown Resources Limited.
Albemarle acknowledges Liontown's announcement on the ASX and confirms that it has submitted a best and final non-binding proposal, pending the absence of a better offer, to acquire all outstanding shares of Liontown through a scheme of arrangement at A$3 cash per share. This revised proposal values Liontown at A$6.6 billion or $4.3 billion in equity value.
This proposal is contingent upon specific conditions, including successful confirmatory due diligence by Albemarle, the execution of a binding scheme implementation deed (SID) subject to Australian regulatory approvals and Liontown shareholder consent, and final approval from Albemarle's board to proceed with the transaction on a binding basis. Albemarle's Board of Directors has unanimously approved this revised proposal.
If the acquisition proceeds following successful due diligence and SID negotiation, it will strengthen Albemarle's Energy Storage business, leveraging its substantial resource base. Additionally, it will expand Albemarle's footprint in Australia, where it possesses significant expertise and world-class lithium resources and conversion facilities. This move will help Albemarle meet the increasing demand for lithium driven by electric vehicles and other emerging markets while maintaining a solid financial position with an expected net leverage of approximately 1.2x.
The Liontown Board has expressed willingness to grant Albemarle an exclusive period for due diligence, subject to standard fiduciary conditions and signing a mutually agreeable non-disclosure and exclusivity agreement. If Albemarle presents a binding proposal at $3.00 per share, the Liontown Board will unanimously recommend it to Liontown shareholders, provided there are no superior offers and subject to the completion of satisfactory due diligence by Albemarle and ongoing endorsement by an independent expert that the revised proposal is in the best interests of Liontown shareholders.
Albemarle and Liontown are expected to engage in a mutually agreeable non-disclosure and exclusivity agreement, providing Albemarle with an exclusive timeframe for conducting confirmatory due diligence and negotiating a binding SID. It's important to note that the revised proposal is not legally binding. There is no certainty regarding the completion of the transaction.
For this transaction, Albemarle has engaged J.P. Morgan as its lead financial advisor, with Barrenjoey also serving as a financial advisor, while Corrs Chambers Westgarth and Shearman & Sterling LLP are providing legal counsel.
Albemarle Corporation Price and Consensus
Albemarle Corporation price-consensus-chart | Albemarle Corporation Quote
Zacks Rank & Key Picks
Albemarle currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) , Akzo Nobel N.V. (AKZOY - Free Report) and Hawkins, Inc. (HWKN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The earnings estimate for Carpenter Technology’s current year is pegged at $3.48, indicating a year-over-year growth of 205%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 10%. The company’s shares have rallied 97.1% in the past year.
The consensus estimate for Akzo Nobel’s current-year earnings is pegged at $1.44, indicating year-over-year growth of 67.4%. In the past 60 days, AKZOY’s current-year earnings estimate has been revised upward by 2.9%. The company’s shares have rallied 31.7% in the past year.
The consensus estimate for Hawkins’ current-year earnings is pegged at $3.40, indicating year-over-year growth of 18.9%. HWKN beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have rallied 66% in the past year.