* Tianqi bid values Talison at C$7.15/share
* Talison in friendly deal with Rockwood worth C$6.50/share
* Shares of Talison up 1.49 percent at C$7.15 on TSX
Nov 19 China's Chengdu Tianqi Industry Group Co
said on Monday it made a formal takeover offer for Talison
Lithium Ltd, valuing the lithium producer at C$806
million ($803.31 million) and topping a friendly deal with
Rockwood Holdings Inc.
The C$7.15-a-share offer, made through Tianqi subsidiary
Windfield Holdings Pty, is 65 Canadian cents a share higher than
the bid from Rockwood, a U.S.-based chemical producer, which
valued Talison at C$724 million.
Talison confirmed the Tianqi offer and said its board will
meet to consider the bid, but noted it has not yet determined if
the offer can be defined as a "superior proposal" under its
agreement with Rockwood.
Talison's shares were trading in line with the Tianqi offer
at C$7.15 on Monday afternoon on the Toronto Stock Exchange. The
stock has gained more than 68 percent since Aug. 22, the day
before the Rockwood deal became public.
Closely held Tianqi said last week it had tied up a 15
percent stake in the miner and was planning to make an offer.
The Chinese company buys nearly all of its lithium
concentrate from Talison and is the sole marketer of Talison
products in China, said Byron Capital Markets analyst Jonathan
Lee in a note to clients last week.
"Thus, Talison is a strategic and necessary partner for
Tianqi's operations going forward," he said.
Tianqi, which makes a variety of raw materials for the
battery industry, said it does not plan to alter operations or
management at Talison.
Talison produces hard rock lithium at its Greenbushes
lithium project in Western Australia, primarily for export to
China. The company also owns the Salares 7 lithium brine project
in Northern Chile.
New Jersey-based Rockwood has said a takeover of Talison
will allow it to expand into Asia and boost its lithium output
as demand rises for lithium batteries, which are used in
smartphones, tablet computers, and hybrid and electric vehicles.