The basis of the offer will be one Lithium Australia share for 13.25 Lepidico shares.
Lithium Australia has been trying to secure a merger with Lepidico and already holds a 17.9% stake in Lepidico.
It is also involved in a Supreme Court of Western Australia battle with Lepidico over whether Lithium Australia’s SiLeach process impinges on Lepidico’s L-Max technology.
Lepidico has claimed that Lithium Australia’s SiLeach process was developed, without authorisation, using Lepidico’s intellectual property in the L-Max technology and/or L-Max confidential information disclosed to Lithium Australia.
This is a claim that Lithium Australia has denied.
Lithium Australia managing director Adrian Griffin said the two companies had similar business strategies and called the litigation between the two a distraction.
“The litigation relating to processing technology is distracting and expensive and although Lithium Australia is confident of a positive outcome, the time and resources currently dedicated to the legal processes would be better employed in advancing our projects and technologies in concert, and for the benefit of the shareholders of both companies,” he said.
“It is the synergies in aspirations and assets that make combining the two companies the perfect opportunity for all shareholders.
“The combined entity is likely to be significantly more attractive for investors and financiers as well as a global leader in lithium processing at a time of unprecedented lithium demand.”
The Lithium Australia bid is subject to four conditions: that its share price not fall by 20% or more after the date of the bid; that Lepidico’s share price not fall by 40% or more after the date of the bid; that there is no material adverse change or event or circumstances likely to result in a material adverse change in relation to Lepidoco or any of its assets; and that there are no “prescribed occurrences” in relation to Lepidco or any of its subsidiaries between the date of the bid and three business days after the end of the bid period.
