Azure Minerals shares halted: Is this lithium share about to be taken over?

Is this the latest ASX lithium share to receive a takeover approach?

| More on:
Man drawing illustration of a big fish eating a little fish representing a takeover or acquisition.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Azure Minerals Ltd (ASX: AZS) shares won't be going anywhere on Monday.

However, this could be a good thing given that the lithium industry is a sea of red this morning.

What's going on with Azure Minerals shares?

Azure Minerals shares were placed in a trading halt this morning at the company's request.

According to the release, the lithium explorer has asked for its shares to be paused from trade until Wednesday 25 October pending the release of an announcement.

That announcement looks set to be big news, with the company revealing that it will be "regarding a potential change of control transaction."

No other information has been provided but this usually means that the company has received a takeover approach.

Who wants to acquire Azure Minerals?

There are two immediately obvious candidates that could be the potential suitor of Azure Minerals.

The first is its joint venture partner at the Andover Project, the Creasy Group. At present, Azure Minerals owns 60% of the project, with Creasy Group owning the balance. Could it be interested in taking full ownership of the project?

However, getting a deal over the line wazould be tricky for the Creasy Group. That's because Azure Minerals has a major shareholder that could do what Gina Rinehart did at Liontown Resources Ltd (ASX: LTR) and effectively block any deal from happening.

That brings us to the second candidate: lithium giant Sociedad Quimica y Minr de Chile SA (NYSE: SQM).

It currently owns a 20% stake in Azure Minerals and previously made an offer to acquire the company back in July. Could it be back with an improved offer?

In August, the company revealed:

[Azure Minerals] confirms that it has previously received expressions of interest from Sociedad Química y Minera de Chile S.A. (SQM) regarding a possible change of control transaction involving Azure, the most recent of which was received by Azure on 12 July 2023 and had an indicative offer price of $2.31 cash per Azure share.

With Azure Minerals shares currently trading at $2.44, an offer somewhere close to the $3.00 mark could be on the table based on the usual premiums.

We'll find out later this week.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Liontown shares are down 17% in a month: What's going on?

This lithium share has failed to roar in recent weeks.

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Materials Shares

Own Rio Tinto shares? Add these dates to your diary in 2024

Here's what Rio Tinto has planned for next year.

Read more »

A man sits uncomfortably at his laptop computer in an outdoor location at a table with trees in the background as he clutches the back of his neck with a wincing look on his face.
Materials Shares

Why did the Core Lithium share price just hit a 2-year low?

Top broker Goldman Sachs says falling lithium commodity prices may hit Core Lithium particularly hard.

Read more »

A cute little boy, short in height, wearing glasses, old-fashioned bow tie and cardigan stands against a wall near a tape measure with his hand at the top of his head as though to measure his height.
Broker Notes

Are ASX short sellers right about Pilbara Minerals shares?

Let's see what some of the big brokers think.

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Materials Shares

What are brokers saying about the BHP share price?

This mining giant's shares are having a strong month. Can the run continue?

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Which ASX lithium stock has soared 246% in just a month?

IPO investors are rubbing their hands in delight.

Read more »

Three miners stand together at a mine site studying documents with equipment in the background
Materials Shares

What is the outlook for ASX lithium shares in 2024?

How are things looking for these miners?

Read more »

a miniature moulded model of a man bent over with a pick working stands behind a sign that has lithium's scientific abbreviation 'Li' with the word lithium underneath it against a sparse bland background.
Materials Shares

What will the lithium price be in 2024?

Will lithium prices continue to fall next year?

Read more »