Shares in Atlantic Lithium soared by 30% after the company announced its rejection of an indicative takeover offer from a major shareholder.
At 0832 GMT, shares rose by 4.30 pence to 25.0 pence.
On Wednesday, the lithium miner confirmed that it has turned down a non-binding indicative offer from Assore International. The offer was to purchase all shares in the company that Assore doesn’t already own, with a price tag of 33 pence per share.
The proposed offer values the entire company at 202 million pounds ($252.5 million). Notably, this offer is identical to the one previously proposed by Assore, which was also rejected by Atlantic Lithium.
Atlantic Lithium, an Africa-focused company with the aim of establishing Ghana’s first lithium mine, believes that the offer undervalues their company. Therefore, they have decisively chosen to decline it.
Moreover, this rejection is essential for market purification prior to the proposed issue of equity. The equity issuance is intended for the Minerals Income Investment Fund. This fund manages equity interest, mineral royalty, and income for Ghana. Additionally, there may be other potential equity issues in the future.
Atlantic Lithium has stated that there is no certainty of further takeover proposals at this moment.