Atlantic Lithium Ltd (AIM:ALL, OTCQX:ALLIF, ASX:A11) chief executive Neil Herbert has welcomed notifications revealing that major shareholder Assore International has increased its holding in the company.
Assore’s holding increased to 28.4% from 25.06%, while Piedmont Lithium (ASX:PLL, OTC:PLLTL) now has a notifiable stake as it declared a 5.2% holding in Atlantic Lithium.
"As the company's largest shareholder, we believe that Assore's purchase of Atlantic Lithium shares at a premium to the current price, increasing their holding to 28.4%, reflects their belief in the substantial value potential that, together with Piedmont, we intend to unlock at the Ewoyaa lithium project,” Herbert said in a statement.
Stockbroker SP Angel last week highlighted that Assore’s latest share purchase may signal its intent.
Assore has previously had two approaches to acquire Atlantic at 33p a share rejected by the lithium group’s board, SP Angel noted.
“We strongly suspect Assore is preparing to take another run at Atlantic Lithium and might be preparing to become a more significant player in lithium production and processing,” the broker said in a note.
“UK investors are concerned that Assore might breach 30%, though UK takeover provisions do not apply in this case. Assore has bought the maximum that the 3% creep provision will allow every 6 months.”