Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 

Bacanora shares surge after $264.5 million takeover by Ganfeng Lithium

05/06/2021 | 09:06am EDT

LONDON (Reuters) - Shares in Bacanora Lithium rose as much as 30% on Thursday after China's Ganfeng Lithium, one of the world's top lithium producers, agreed to buy the shares it does not already own for up to 190 million pounds ($264.5 million).

The deal, which values Bacanora at up to around 267 million pounds, comes as prices for lithium surge due to booming demand for electric vehicles, where the chemical is used in rechargeable batteries.

Ganfeng, which in February announced a plan to raise its stake in Bacanora to 28.88% from 17.41%, will acquire the remaining shares in the company at 67.5 pence each, a joint statement said. The increase in Ganfeng's stake to 28.88% is expected to complete shortly, it added.

London-listed shares in Bacanora, which aims to start production from its Sonora lithium project in Mexico in 2023, surged 30% to 59.5 pence by 1250 GMT, putting the offer at an 11% premium.

Jiangxi-based Ganfeng said in late March it planned to boost production capacity roughly fivefold to 600,000 tonnes of lithium carbonate equivalent (LCE) annually, without providing a timeframe.

Bacanora will delist from London once the deal goes through, removing one of two pure-play lithium producers on the London Stock Exchange at a time when investors are looking to capitalise on companies that will drive the transition to cleaner energy.

The deal follows the announcement of a merger between lithium producers Galaxy Resources and Orocobre Ltd last month as demand for the key electric vehicle battery ingredient surges after a three-year downturn.

Prices for battery-grade lithium carbonate in China, as assessed by Asian Metal, are up 69.5% year to date at 89,000 yuan per tonne ($13,760), the highest since August 2018.

($1 = 0.7184 pounds)

 

(Reporting by Tom Daly, Zandi Shabalala and Clara Denina; editing by Kirsten Donovan and Jason Neely)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BACANORA LITHIUM PLC 2.09% 58.7 Delayed Quote.-8.28%
GALAXY RESOURCES LIMITED 1.55% 3.92 End-of-day quote.75.78%
GANFENG LITHIUM CO., LTD. 0.62% 124.41 End-of-day quote.22.93%
LONDON STOCK EXCHANGE PLC 2.06% 7724 Delayed Quote.-14.25%
OROCOBRE LIMITED 0.74% 6.77 End-of-day quote.51.45%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) 0.00% 6.39358 Delayed Quote.-1.56%
Latest news
01:05aChina reports 34 new coronavirus cases on June 12
RE
01:03aINVESTOR INVITATION NOTICE : VietinBank Tower Project
PU
06/12Indonesia plans to extend tax breaks on two-wheel drive cars
RE
06/12Exclusive-Toshiba's No.2 shareholder calls for immediate resignation of board chair, 3 directors
RE
06/12Announced at Parker Seminars Orlando 2021 - Parker University Strengthens Reputation in Educational Technology Leadership Role Among Chiropractic Programs Through Partnership with Touch of Life Technologies
GL
06/12Press Conference - G7 Carbis Bay, United Kingdom
PU
06/12DEPARTMENT OF PRIME MINISTER AND CABINET AUSá : Joint Statement by President Biden, Prime Minister Johnson and Prime Minister Morrison
PU
06/12EXCLUSIVE : 3d letter says troubling that nagayama remains silent about report, has failed to accept responsibility for the misconduct that occurred under his oversight
RE
06/12EXCLUSIVE : 3d letter says board chair nagayama ultimately responsible for toshiba’s recent governance failures
RE
06/12EXCLUSIVE : 3d letter says "please serve interest of company by resigning from your directorships immediately and allow co to begin to rebuild trust among its stakeholders"
RE
Latest news