Rumour Goes that CATL Will Bid for A Canadian Lithium Company at A Price of US$298 Million

SHANGHAI, Sep 16 (SMM) - Net rumours say that CATL (Contemporary Amperex Technology Co., Limited) (300750) intends to contribute C$377 million (US$298 million) to bid for the Canadian lithium company, Millennial, thereby ensuring a stable supply of lithium resources. The offer is said to be about 7% higher than Ganfeng Lithium's previous proposed offer.

Millennial, listed in Toronto, Canada, mainly engages in the acquisition, exploration and development of lithium mining. The Company's principal assets are the Pastos Grandes Lithium Salt Lake Project in Salta Province, Argentina, and the Cauchari East Lithium Salt Lake Project in Jujuy Province, Argentina.

In July this year, Ganfeng Lithium (002460) announced that, in order to expand the company's business coverage and enhance its core competitiveness, the company intended to offer to acquire as much as 100% of the equity of Millennial at a price of C$3.60 per share, in a transaction amounting to C$353 million the highest, while the real target was the salt lake projects in Argentina.

However, Millennial announced to the public on September 8 that it had received a non-binding unsolicited offer from a foreign lithium battery producer for C$3.85 per share, but did not mention the specifics about the company. An internal resource said that CATL was the buyer behind this proposal.

According to the media, Luoyang Molybdenum (603993) is also considering participating in the bid for Millennial.