In today’s briefing:
- Arcadium Lithium (ALTM US/LTM AU): Scheme Vote on 23 December as Risks Mount
- Rio Tinto/Arcadium: Trading Wide Ahead Of 23rd Dec Vote
Arcadium Lithium (ALTM US/LTM AU): Scheme Vote on 23 December as Risks Mount
- The Arcadium Lithium (ALTM US) scheme meeting relating to Rio Tinto Ltd (RIO AU)’s US$5.85 offer is on 23 December. The transaction is expected to close in mid-2025.
- The high current 12.3% spread reflects risk related to regulatory and shareholder approvals. The numerous required regulatory approvals pose a risk to completion and/or timing.
- Despite depressed lithium prices, the offer remains unattractive on several fronts. Blackwattle, which opposes the offer, could rally others to force a bump. Rio conceding to a bump is uncertain.
Rio Tinto/Arcadium: Trading Wide Ahead Of 23rd Dec Vote
- Back on the 9th October, Rio Tinto Ltd (RIO AU) reached an agreement to buy Arcadium Lithium (LTM AU/ALTM US) for US$5.85/share (~A$8.70/share), a ~90% premium to undisturbed.
- The proxy statement is now out, with a Scheme Meeting scheduled for 23 December. The transaction is expected to close in mid-2025. The long stop is the 9th October 2025.
- Trading wide-ish at a gross spread of 11.9%, reflecting the timing to secure regulatory approvals – notably from China – as opposed the Offer Price being viewed as opportunistic.
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