Azure Minerals Ltd (ASX: AZS) shares have returned from their trading halt.
In early trade, the lithium developer's shares are up 2% to $3.70.
What's going on with Azure Minerals shares?
This morning, Azure Minerals released an update on its proposed takeover by lithium giant Sociedad Química y Minera de Chile S.A. (NYSE: SQM).
As readers may be aware, the company was in the process of being taken over by the Chilean miner before Hancock Prospecting built a blocking stake.
However, the company has now revealed that the two parties have teamed up as joint bidders, under which it is proposed that they will acquire 100% of the shares in Azure by way of a scheme of arrangement for a cash amount of $3.70 per share. It also includes a fall-back takeover offer of $3.65 per Azure share via an off-market takeover if the scheme proposal is not successful.
This offer values the company at $1.7 billion and represents a 5.1% premium to the previous SQM proposal of $3.52 cash per share, which has now been replaced. It is also a 63.9% premium to the average Azure Minerals share price in the 10 days prior to the announcement of the SQM transaction in October.
The Azure board unanimously recommends the transaction in the absence of a superior proposal and subject to the independent expert's report. Two of Azure's major shareholders, Creasy Group and Delphi Group, each intend to support the transaction under the same conditions.
Commenting on the transaction, Azure's managing director, Tony Rovira, said:
The Transaction delivers a fantastic outcome for Azure shareholders, including a significant uplift in value from the Original SQM Transaction despite elevated market volatility and the recent deterioration in lithium prices. The Transaction also represents a great outcome for wider stakeholders in Andover, who will benefit from the significant financial strength and expertise of one of Australia's largest and most well-respected mining and exploration companies, Hancock, combining with SQM to oversee the successful development of Andover. We encourage all Azure shareholders to support the Transaction.
