Think BIG, an investors group representing more than 500 shareholders in Bacanora Lithium Plc (AIM:BCN, OTC:BCLMF), published an open letter criticising Ganfeng International’s takeover offer and urging Bacanora to seek a better offer.
Ganfeng, the world's largest lithium producer, approached Bacanora back in May with a 67.5p per share cash offer. The Chinese group already had a 29% stake in Bacanora and a 50% stake in Sonora, the AIM-listed miner’s lithium project in Mexico, when it made the offer.
READ: Bacanora Lithium receives takeover approach from major shareholder
Think BIG said it believes the offer is not in the best interests of shareholders and suggested the company’s board seek to negotiate a better offer. The investors group said lithium prices were increasing significantly even before the takeover offer was raised as a possibility.
“Think BIG also urges investors to contact the board requesting it engages with Think BIG to better communicate why the board is keen on pushing through a takeover offer that appears opportunistic, at a lowball value, and based on a lithium price less than 40% of today’s market price,” it said in the open letter.