The announcement pointed out that before the completion of the offer, Shanghai Ganfeng held a 28.88 per cent stake in Bacanora; if the offer is successful, Shanghai Ganfeng will eventually control Bacanora and hold no more than 100 per cent of the company.
The announcement also pointed out that the tender offer still requires Bacanora shareholders to go through the acceptance procedures, and the final shareholding ratio depends on the outcome of the acceptance procedures performed by Bacanora shareholders.
Drive to "double yellow eggs"
The tender offer is worth no more than 190 million pounds, according to an announcement issued in early May.
However, Vike Lithium noted that when the tender offer was announced in early May, Shanghai Ganfeng was still in the process of increasing its stake in Bacanora to 28.88 per cent, and it was announced at the time that Shanghai Ganfeng would own 100 per cent of Bacanora after the tender offer was completed, while the progress announcement changed to "holding no more than 100 per cent of the company".
Before and after the announcement, the changes in the description of Shanghai Ganfeng's final shareholding in Bacanora will be confirmed by the subsequent disclosure of Ganfeng Lithium Industry. However, this does not affect the fact that Shanghai Ganfeng will eventually control Bacanora, nor will Ganfeng Lithium win the world's largest lithium resources project, and it may also be the effect of double yellow eggs.
Data show that Bacanora is a company founded in 2018 and listed on the AIM sector of the London Stock Exchange in the UK. Its main business is group holding and lithium clay resource project management, and its main asset is the lithium clay Sonora project located in Mexico.
The Sonora project is a lithium clay lithium extraction project located in Mexico and is currently one of the largest lithium resource projects in the world. Shanghai Ganfeng and Bacanora each own 50 per cent of the project. According to the feasibility study report of the Sonora project, the total lithium resource of the project is about 8.82 million tons of lithium carbonate equivalent.
Thanks to the unique advantages of lithium clay resources, the lithium extraction process of the project is characterized by the advantages of both ore and salt lake lithium extraction, which can complete the lithium extraction process in a short time at a speed similar to that of ore extraction. Lithium extraction can also be completed at a lower cost at a cost similar to that of brine. At present, the project has not yet been put into production, and it is estimated that the annualized lithium hydroxide production capacity of the first phase of the project will be 20000 tons.
It is worth noting that on August 25, Bacanora Chairman Mark Hohnen said, "We are very pleased that Bacanora has been able to cooperate effectively with Gan Feng and agree on the terms of the formal acquisition offer." Bacanora also said that as part of the deal, its shareholders would now also receive shares in Zinnwald Lithium, which is listed on the London alternative Investment Market, and Bacanora holds a 36 per cent stake in the company.
Bacanora said that with these shares, the premium would rise to 63 per cent, while Ganfeng Lithium's offer of 190 million pounds represented a 50 per cent premium to Bacanora's closing price on May 5, according to the May acquisition announcement.
It is understood that Zinnwald, with a market capitalization of 66 million euros, is developing a lithium mine in Germany, 35 kilometers from Dresden. Meanwhile, Zinnwald said in a statement that the company looks forward to continuing to work with potential new shareholders.
It can be seen that the Sonora project and Zinnwald Lithium are the "double yellow eggs" opened by Ganfeng Lithium Industry through Bacanora Company. Of course, whether, Zinnwald Lithium can become a mature "egg yolk" depends on the planning of Ganfeng Lithium Industry.
The global "lithium king" has been born.
Ganfeng Lithium Industry is a veritable "Lithium King", which currently has 8 high-quality lithium resources directly or indirectly around the world. The details are as follows:
1. In Australia, it has a 50% interest in the Mount Marion spodumene mine (with a current output of 400000 tons / year) and a 6.33% interest in the, Pilbara Pilgangoora spodumene mine;
2. In Argentina, it has 51% rights and interests in Cauchari-Olaroz lithium salt lake (halogen resources are about 24.58 million tons of LCE) and 88.75% in Mariana lithium salt lake.
3. 50% interest in Sonora lithium clay in Mexico;
4. Has 55% interest in Avalonia spodumene mine in Ireland;
5. It has 100% rights and interests in Ningdu Heyuan spodumene Mine and 100% Lithium Mine in Fenghuangtai Deep Brine of Qinghai Mangya Committee.
In addition, on July 17th, Ganfeng International, a wholly-owned subsidiary of Ganfeng Lithium Industry, made an offer to acquire Millennial of Canada, which owns 100% interest in PastosGrandes Lithium Salt Lake Project and CauchariEast Lithium Salt Lake Project.
It can be seen that the lithium resource equity reserves of Ganfeng lithium industry have increased significantly again.
According to the analysis of domestic and foreign research institutions, as the sales of electric vehicles continue to grow, resources will be king in the future, and the structural shortage of lithium concentrate is gradually becoming a trend, and the price of lithium concentrate is expected to accelerate upward.
As the "Lithium King", Ganfeng Lithium Industry can be said to have amazing predictability. It can also be said that Aitun and Buy have already carried out the distribution of lithium resources at home and abroad in the first half of this year.
On June 14, Ganfeng Lithium Industry announced that Ganfeng International intends to acquire a 50% stake in SPV of the Netherlands for $130 million (about 832 million yuan). After the completion of the investment, 50% of the annual production capacity of the first phase of the Goulamina project will be about 455000 tons of spodumene concentrate. If Ganfeng Lithium directly provides financial assistance or assists LMSA in obtaining debt funds provided by third-party banks or other financial institutions, it can obtain the right to underwrite the remaining 50% of the production capacity in the first phase of the project. In other words, Ganfeng Lithium Industry will indirectly have 100% underwriting rights for 455000 tons / year of pyroxene concentrate.
On May 28th, Ganfeng Lithium Industry announced that Ganfeng International invested US $15 million in SRN listed company-level negotiable bonds. Six months after the investment takes effect, the company has the right to convert its 100% deliverable equity into a 25% stake in FE (holding TAS laterite nickel assets). At the same time of the conversion, the company has the right to increase its stake in FE to 50 per cent at an additional consideration of $15 million. If exercised, Ganfeng International will acquire a 50 per cent stake in FE for a cumulative consideration of US $30 million (RMB 194 million).
Battery business acceleration
Compared with Ganfeng lithium industry's strong raw material production capacity and rapid expansion, the market pays less attention to Ganfeng lithium industry's battery business. The actual situation is that lithium-ion battery is an important part of the layout of Ganfeng lithium industry lithium electricity ecosystem and an important business plate. Ganfeng lithium ecosystem is composed of upstream lithium resources, lithium compounds, metal lithium and lithium battery recycling.
According to the 2020 annual report of Ganfeng Lithium Industry, the company's revenue from lithium battery products in 2020 was about 1.268 billion yuan, an increase of 110.33% over the same period last year, accounting for 22.96% of its total revenue.
It is reported that Ganfeng Lithium's lithium battery business is mainly consumer batteries, TWS batteries, power / storage batteries and cutting-edge solid-state batteries.
The time has come this year, Ganfeng Lithium Industry began to develop power battery business.
1. 8.4 billion Lithium Battery Project
On August 5, Ganfeng Lithium Industry announced that it agreed to invest 8.4 billion yuan with its own funds to build a new lithium battery project with an annual production capacity of 15GWh.
Specifically, Ganfeng Lithium Power plans to invest 3 billion yuan to build an annual 5GWh new lithium battery project in Jiangxi Xinyu High-tech Zone; to set up a new independent legal person project in Chongqing Liangjiang New area and invest 5.4 billion yuan to build an annual 10GWh new lithium battery science and technology park and advanced battery research institute project.
It is worth noting that solid-state batteries are a bright spot in this investment project.
The contents of the project construction in Chongqing Liangjiang New area include the construction of 10GWh lithium battery manufacturing base, and after Ganfeng Lithium Power or its holding company reached a cooperation with Chongqing new energy vehicle companies, Ganfeng Lithium Power established an Advanced Battery Research Institute in Chongqing to provide technical support for various solid state battery technology upgrading and product iteration, while conducting applied technology research and development with downstream customers such as automobile and consumer electronics.
2. The solid-state battery will be loaded soon.
On July 16, Ganfeng Lithium Power signed a formal contract with the Technology Center of Dongfeng Company, and the two sides discussed the demonstration and operation cooperation of solid-state batteries and signed an agreement on the demonstration and promotion of solid-state battery E70 models.
According to the Dongfeng Technology Center, this year, Dongfeng will take the lead in completing the announcement of solid-state battery vehicles and complete the delivery of vehicles before the Spring Festival, demonstrating the operation mode to quickly seize the commanding heights in the field of solid-state battery technology. It is expected that in early 2022, Ganfeng lithium solid-state battery may be the first to be installed in the Dongfeng E70 model, and the vehicle delivery and demonstration promotion will be completed.
3. Lithium iron phosphate battery begins to load.
In June, the 345th batch of "Road Motor vehicle Manufacturing Enterprises and products announcement" announced by the Ministry of Industry and Information Technology showed that the Qilu Automobile costin EC1 car, which was developed and declared jointly by Chery Group and Qilu Automobile, had a battery type of lithium iron phosphate, and the battery came from Ganfeng lithium industry.
It can be seen that the solid-state battery of Ganfeng Lithium Power will be loaded early next year, and the lithium iron phosphate battery of Ganfeng Lithium Industry has been loaded and invested heavily in the construction of lithium battery project. All kinds of actions send a big signal that the upstream "Lithium King" has joined the battery war!
The market capitalization soared by 123.7 billion yuan.
Western Securities said that Ganfeng Lithium Industry has built a vertically integrated business model that integrates upstream resource development, mid-stream lithium salt production, downstream battery and recycling, and has a diversified layout of lithium salt products.
By the close of trading on August 27th, Ganfeng Lithium Industry was trading at 196.35 yuan per share, up 8.25 yuan per share, or 4.39%, with a total market capitalization of 282.2 billion yuan. Compared with the total market capitalization of 158.5 billion yuan at the close of trading on Aug. 12, it soared 123.7 billion yuan in half a month.
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