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CATL confirmed to be Millennial Lithium buyer in $297m deal

Credit: Millennial Lithium Corp.

Contemporary Amperex Technology Co. (CATL) announced on Tuesday it has entered a definitive agreement to acquire all of the outstanding common shares of Millennial Lithium (TSXV: ML), confirming earlier reports that the EV battery giant is the mystery buyer of the Canadian lithium miner.

As per the definitive agreement and in line with previous reports, the Chinese battery maker will acquire Millennial at a price of C$3.85 per share, representing total cash consideration of approximately C$377 million ($297m).

Prior to its agreement with CATL, Millennial terminated its arrangement with Ganfeng Lithium, which offered to buy the company at C$3.60 per share (C$353 million) in July but was unwilling to enter a bidding war.

CATL’s competing offer represents a premium of approximately 29% over the 20-day average closing price of C$2.98 for the common shares on the TSX Venture Exchange, as well as a 6.9% premium over Ganfeng’s bid.

Apart from Ganfeng, Millennial’s assets have also attracted interest from China Molybdenum Co., which was rumored to have considered joining CATL in its bid.

Millennial has two non-producing lithium brine projects in northern Argentina — Pastos Grandes and Cauchari East, with a combined 4.12 million tonnes of lithium carbonate equivalent (LCE) in measured and indicated resources.