Bacanora Lithium Acquisition
Posted: May 8th, 2021, 7:21 pm
Bacanora Lithium (BCN) have announced an offer to take the company private at 67.5p by their partner and major shareholder Ganfeng. The offer Comes with the recommendation of the BCN board. BCN closed at 58p on Friday. At face value there seems to be a price arbitrage opportunity with a 16% uplift from current market price to offer price.
Interested in others thoughts on the risks here. As I see it:
Offer is provisional, subject to approval by Chinese government. I assume given strategic nature of lithium in future energy needs this will be forthcoming.
Other major shareholders, I believe M&G is one, may not agree to the offer.
Other than that this seems a reasonable bet.
Thoughts?
Cheers,
Juan
Interested in others thoughts on the risks here. As I see it:
Offer is provisional, subject to approval by Chinese government. I assume given strategic nature of lithium in future energy needs this will be forthcoming.
Other major shareholders, I believe M&G is one, may not agree to the offer.
Other than that this seems a reasonable bet.
Thoughts?
Cheers,
Juan