Millennial terminated its arrangement agreement with Ganfeng Lithium Co., Ltd. and 1314992 B.C. Ltd. ("Ganfeng") dated July 16, 2021
Millennial Lithium Corp. (TSXV: ML) (FSE: A3N2) (OTCQX: MLNLF) (“Millennial” or the “Company”) is pleased to announce that it has entered into a definitive arrangement agreement (the “CATL Arrangement Agreement”) with Contemporary Amperex Technology Co., Ltd. (“CATL”) dated September 28, 2021 pursuant to which CATL will acquire all of the outstanding shares of Millennial (each, a “Common Share”) by way of a plan of arrangement (the “CATL Arrangement”) for CAD$3.85 per Common Share (the “Purchase Price”), payable in cash, representing total cash consideration of approximately CAD$377 million.
Prior to entering into the CATL Arrangement Agreement, Millennial terminated its arrangement agreement with Ganfeng Lithium Co., Ltd. and 1314992 B.C. Ltd. (“Ganfeng”) dated July 16, 2021, as amended (the “Ganfeng Arrangement Agreement”), in accordance with its terms.
As disclosed in its press release issued on September 8, 2021, Millennial received a non-binding proposal from CATL to acquire all of the issued and outstanding Common Shares at a price of CAD$3.85 per Common Share and notified Ganfeng that this proposal constituted a “Superior Proposal” in accordance with the terms of Ganfeng Arrangement Agreement. Ganfeng elected not to exercise its right to match and, as a result, Millennial terminated the Ganfeng Arrangement Agreement in accordance with its terms and entered into the CATL Arrangement Agreement. The CATL Arrangement represents a premium of approximately 6.9% to the value of the consideration offered pursuant to the Ganfeng Arrangement Agreement.
Consistent with market practice in similar transactions and pursuant to the CATL Arrangement Agreement, CATL has also reimbursed Millennial for the termination fee of USD$10 million paid to Ganfeng in respect of the termination of the Ganfeng Arrangement Agreement (the “Existing Termination Amount”).
Source: Company Press Release