According to Canaccord Genuity:
February 26, 2013
Talison Lithium* (TLH : TSX : $7.46), Net Change: 0.05, % Change: 0.67%, Volume: 91,073
Canada Lithium* (CLQ : TSX : $0.81), Net Change: -0.02, % Change: -2.41%, Volume: 566,167
The takeover of Talison Lithium by China?s Tianqi took another big step forward, after Tianqi announced that it has successfully arranged the financing needed for its acquisition of Talison. On Monday, Talison confirmed that Tianqi has provided the necessary documentary evidence in connection with its funding arrangements. Tianqi plans to purchase Talison for cash consideration of $7.50 per TLH share, or ~$848 million on a fully diluted basis. The Scheme of Arrangement meeting is this Wednesday and the last trading day for TLH shares is expected to be March 13, 2013. Of interest, last week during its quarterly conference call last week, Rockwood Holdings (ROC) noted that of its five operating divisions, it has designated only the Lithium division and Surface Treatment divisions as "core businesses." One Bay Street brokerage noted that during the conference call, Rockwood made special mention of Tianqi?s announced acquisition of Talison and pointed that the combination is "not a done deal" and remains subject to Tianqi raising the required capital to finance the acquisition. Following the conference call, the Bay Street brokerage highlighted, "Should the Tianqi/Talison deal be completed, Rockwood will be left with considerable resources, and potentially an increasing amount of liquidity, to pursue other growth targets." They added, "Given comments on the call, Rockwood is likely considering lithium targets below $1 billion in value. This makes the Canadian junior companies prime targets."