Atlantic Lithium chairman explains rejection of two takeover offers

November 16, 2023 at 11:05 AM EST

Atlantic Lithium Ltd (AIM:ALL, OTCQX:ALLIF, ASX:A11) chairman Neil Herbert speaks with Proactive after announcing the company has twice rejected a takeover approach from its major shareholder, Assore International, worth just over £200 million. Assore offered to buy all the shares it does not own at a price of 33p or around a 60% premium to the close in London on Tuesday this week. Herbert says the company’s independent directors committee (IBC) considered the latest approach, which was at the same price as an earlier approach on 2 October, before rejecting it as it did with the first.

In regard to an updated target price, Liberum analyst Yeun Low wrote in a note to clients this week: "In the absence of competing offers, we believe our updated target price balances upside potential against the various risks associated with (and not limited to) permitting, funding, exploration, development, construction and ramp-up,"