Atlantic Lithium Ltd (AIM:ALL, ASX:A11, OTCID:ALLIF), the Africa-focused lithium explorer, has agreed to a takeover by Zhejiang Huayou Cobalt, a Chinese new energy materials company, in an all-cash deal valuing the company at approximately $210 million.
Huayou will acquire all issued shares at a 26.6% premium to Atlantic's last closing price and 21.8% above its 30-day volume-weighted average price.
The deal centres on Atlantic Lithium's flagship Ewoyaa Lithium Project in Ghana, one of Africa's more advanced hard rock lithium discoveries and is seen as a potential supplier to the electric vehicle and energy storage sectors.
Atlantic's board has unanimously recommended shareholders vote in favour of the scheme, citing lithium price volatility, the complexity of developing the project under its existing joint venture structure, and the risks attached to financing and construction as factors weighing against pursuing the project independently.
Assore International, the company's largest shareholder with a stake of 26.4%, has confirmed it intends to vote in favour of the transaction, subject to no superior proposal emerging and an independent expert endorsing the deal as being in shareholders' interests.
The takeover is structured as an Australian scheme of arrangement and requires shareholder approval at a meeting expected to be held in November 2026, with completion targeted by the end of the year.
Chief executive Keith Muller said Huayou's offer provided an attractive and certain outcome for shareholders, given the execution risks associated with taking Ewoyaa through to production.
Huayou chairman Chen Hongliang said the acquisition complemented the company's existing battery metals mining operations in Africa and aligned with its broader strategy of building a new energy materials business.