Albemarle offers to acquire Liontown for A$2.50 per share in cash

Albemarle (ALB) notes the announcement to the ASX by Liontown Resources (LINRF) on March 28, 2023, and confirms that it submitted a non-binding proposal to acquire all outstanding shares of Liontown by way of scheme of arrangement for A$2.50 or $1.66 per share in cash, which values Liontown at A$5.2B or $3.4B on an enterprise basis. Albemarle believes the proposal is a compelling opportunity for Liontown shareholders with the per share consideration representing a substantial premium to Liontown shareholders and a material premium over relevant benchmarks. To highlight a commitment to the transaction, Albemarle has accumulated a less than 5% stake in Liontown stock as of March 27, 2023, through on-market purchases. Albemarle notes that the Liontown Board has not meaningfully engaged with Albemarle to facilitate its shareholders receiving the benefits of the proposal. Albemarle believes this is a compelling opportunity for Liontown shareholders and that Liontown’s Board should immediately engage with Albemarle to facilitate a binding offer to be put to its shareholders for their consideration. Albemarle believes this offer provides enhanced liquidity and accelerates the realization of incremental value for Liontown shareholders beyond what might otherwise be expected from share price performance over the next few years and without the operating, market, financial and other risks that could impact the value of Liontown. Albemarle has submitted this attractive cash offer in advance of Liontown’s completion of the Kathleen Valley project, which allows Liontown shareholders to avoid future risks associated with project development and operations.