- Altamin (AZI) wants to reject a $37.2 million takeover bid from VBS Exchange, saying the offer undervalues its portfolio of projects in Italy
- VBS has offered 9.5 cents per AZI share for full control of the base metals and battery explorer, valuing Altamin at $37.2 million
- Altamin says this price is significantly lower than average premiums paid in Australian corporate control agreements and “significantly” undervalues its Gorno zinc project
- VBS is a major Altamin shareholder and holds a 19.73% voting right, but Altamin’s board has urged investors to reject the tender offer.
- Altamin shares are up 2.08% at 9.8 cents apiece as of 2:01 p.m. AEST.
Base metals and battery explorer Altamin (AZI) wants to reject a $37.2 million takeover bid from VBS Exchange, saying the offer undervalues its portfolio of projects in Italy.
While VBS has yet to issue a formal statement of intent for the tender offer, Altamin’s board of directors today urged shareholders to reject the offer.
The company said VBS’s cash offer of 9.5 cents per AZI share for full control of the company was a 3.1% discount to AZI’s highest market price during the month. months preceding the VBS offer.
Additionally, the 9.5 cent price represents a 7.7% premium to AZI’s one-month volume-weighted average price and a 14% premium to its volume-weighted average price. volume over two months.
“These premiums are significantly lower than the average premiums paid in Australian corporate control transactions,” Altamin said in a statement to investors.
Additionally, Altamin said the offer price of $37.2 million represents a “significant” discount to the net present value of its flagship Gorno zinc project in the Italian province of Bergamo.
In a 2021 scoping study for Gorno, the net present value of the project was US$211 million (A$300 million), according to Altamin.
In addition, this valuation was based on a zinc price of US$2,850 per tonne. For the past month, zinc has been trading at over US$4,000 per tonne.
Altamin said that in addition to Gorno, it had amassed an “attractive” portfolio of projects in Italy, including the Punta Corna cobalt project, and had a growing list of exploration license (EL) applications, including some are related to lithium and brine.
“Although these ELs are very promising and the premiums currently associated with lithium projects, VBS made no mention of these assets in its bidder’s statement,” Altamin said.
VBS, which is part of the Victor Smorgon group, is a major shareholder of Altamin and holds a voting right of 19.73%.
Altamin shares rose 2.08% to 9.8 cents apiece at 2:01 p.m. AEST. The company has a market capitalization of $37 million.