(Reuters) -Australia’s Sayona Mining will certainly purchase U.S.-based Piedmont Lithium in an all-stock offer that will certainly combine its Canadian procedures and reinforce its direct exposure to the North American electrical lorry industry, the business claimed on Tuesday.
The companies did not reveal an offer worth. They did not promptly react to Reuters’ ask for remark.
Under the offer, both business will certainly combine to produce a lithium organization, with Sayona coming to be the moms and dad entity. Sayona and Piedmont investors will certainly possess the mixed entity around uniformly.
As component of the merging, Sayona will certainly increase A$ 40 million ($ 26.04 million) with a funding raising and A$ 69 million with a conditional positioning of shares. Piedmont will certainly release shares worth $27 million.
The Australian lithium market is reeling from fast supply development that has actually surpassed solid need forecasts, as the fostering of electrical lorries has actually been slower than anticipated.
The incorporated entity will certainly have an approximated pro-forma market capitalisation of $623 million, both business claimed.
($ 1 = 1.5361 Australian bucks)
(Reporting by Roshan Thomas and Rajasik Mukherjee in Bengaluru; Editing by Abinaya Vijayaraghavan)
