Alpha Lithium Corporation recently filed a Notice of Change to the Company’s Directors’ Circular recommending that shareholders accept an increased offer from Tecpetrol S.A. for the purchase of all common shares of the Company.
Tecpetrol S.A. is a major Argentine oil and gas company that has made increased offers for a total purchase price in all cash of US$122.8 million, representing a 42% increase from their original offer. The original offer from Tecpetrol was for US$86.6 million, initially recommended by Alpha’s Board of Directors prior to the Notice of Change.
The notice from Alpha states that, “Since the Original Circular was issued, the Board of Directors of Alpha has undertaken extensive review and consideration of the Increased Bid, and has concluded that the Increased Bid is reasonably likely to be superior to other alternatives that may be available.”
Alpha’s Board of Directors believes that acceptance of the Increased Bid is in the best interest of the Company and its shareholders given the cash consideration, relative certainty, and elimination of transaction and funding costs and risks associated with other alternative transactions.
The shareholders of Alpha will be asked to vote on the proposed transaction with Tecpetrol at the upcoming special meeting to be held on June 28, 2018. The Board of Directors are unanimously recommending that the Alpha shareholders vote in favour the proposed transaction.
The increased offer from Tecpetrol S.A. is indicative of their confidence in the Company’s prospects and serves as an important milestone in the Alpha’s progress. If approved, the sale of the Company could be a great benefit to Alpha shareholders and provide Tecpetrol access to Alpha’s exceptional reserves.
