Millennial Lithium (ML.V) has cancelled the previously announced agreement to sell itself to Ganfeng Lithium and has entered into a definitive agreement with CATL whereby the latter will acquire all shares of Millennial Lithium for a cash payment of C$3.85/share. CATL has already reimbursed Millennial Lithium for the US$10M break fee which had to be paid to Ganfeng as compensation for blowing up the previous deal.
The shareholders meeting to decide on the new offer will be held on November 15th and it looks like the deal will be ratified. Should it fall through, CATL will be required to make an US$16M break fee payment to Millennial Lithium, whereas CATL is protected by a US$10M break fee should Millennial walk away (if, for instance another, higher offer came in). Should the November 15th meeting approve the agreement, Millennial Lithium will likely be delisted by the end of this year, or early next year.
Disclosure: The author has no positoin in Millennial Lithium. Please read our disclaimer.
