Chile-based copper producer Codelco is set to diversify its offering by acquiring Australian junior Lithium Power International (LPI).
LPI shareholders have voted in favour of the acquisition, which will see Codelco subsidiary Salar de Maricunga SpA acquire all ordinary shares in LPI for $0.57 cash per share.
The deal values LPI at $385 million and was unanimously recommended by LPI’s board.
“The LPI directors consider that the opportunity to immediately realise value for cash offered by the scheme has the potential to deliver greater benefits to LPI shareholders than any other alternative currently available,” LPI non-executive chairman David Hannon said at the company’s scheme meeting.
“The independent expert concluded that the scheme is fair and reasonable, and in the best interests of shareholders, in the absence of a superior proposal.”
Hannon thanked those involved in the business as the meeting came to an end.
“Last but not least, regardless of today’s outcome, I would like to thank you all for your tremendous support during the company’s journey,” he said.
“As we collectively approach what may be the end of a successful chapter, I sincerely wish everyone that has been involved all the best in their future endeavours.”
LPI expects the scheme to be implemented on February 23.