The new board of the merged company will have four independent directors from Orocobre and four from Galaxy Resources and Orocobre’s current chief executive. Galaxy Resources shareholders will receive 0.569 Orocobre shares for each of their Galaxy Resources shares, leaving Orocobre shareholders with 54.2 per cent of the merged company and Galaxy Resources shareholders will own 45.8 per cent. “Both Orocobre and Galaxy shareholders will benefit from the diversification, growth and scale of a top five global lithium chemicals company,” he said. “The logic of this merger is compelling,” said Orocobre chairman, Robert Hubbard, who becomes deputy chairman of the new merged company.
- A new name has yet to be selected for the new merged company which will have its head office in Buenos Aires, Argentina, and a corporate headquarters on Australia’s east coast.
- Galaxy Resources chief executive, Simon Hay, steps into a new role with the merged company as president of international business reporting to the chief executive.
- The merger will unlock significant synergies for the merged company, create a diversified production base, and realise significant value for shareholders, said the companies.
- All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only.
- The boards of the two companies have signed a binding Merger Implementation Deed whereby Orocobre will acquire 100 per cent of the shares of Galaxy Resources.
Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. Orocobre has its Olaroz and Cauchari lithium carbonate projects also in Argentina, and the Naraha lithium-ion expert advisor coder hydroxide conversion facility in Japan for 10,000 tonnes per year. Orocobre’s and Galaxy Resources’ boards have agreed to the merger through a Galaxy Scheme of Arrangement subject to no competing proposal appearing for the company.
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This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. The merged company will have a strong balance sheet with cash of $US487m making it well positioned to develop its world-class lithium projects with a production capacity of 40,000 tonnes per year.
The new company will have an industry-leading growth profile and an enhanced financial position to optimise and accelerate development of its lithium assets. The merger will unlock significant synergies for the merged company, create a diversified production base, and realise significant value for shareholders, said the companies. Galaxy Resources chief executive, Simon Hay, steps into a new role with the merged company as president of international business reporting to the chief executive. Markets coverage, company profiles and industry insights from Australia’s best business journalists – all collated and delivered straight to your inbox every day.
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All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Galaxy Resources recently completed a feasibility study for its Sal de Vida lithium carbonate project in Argentina, and operates the Mt Cattlin spodumene concentrate project in WA.
Orocobre shareholders own 54.2 per cent of merged company
A new name has yet to be selected for the new merged company which will have its head office in Buenos Aires, Argentina, and a corporate headquarters on Australia’s east coast. The companies have a complementary portfolio of brine and hard rock lithium assets spread across Australia and Argentina and a vertically-integrated supply chain. Click the link below and we’ll send you MarketBeat’s list of ten stocks that will drive in any economic environment.
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Both Hubbard and Rowley are to step down from their roles as chairman and deputy chairman of the new company one year after the merger is implemented in August this year. “This transaction has the potential to be a significant value-creating opportunity for Galaxy and Orocobre shareholders,” said Galaxy Resources chairman, Martin Rowley, the new company’s non-executive chairman. The boards of the two companies have signed a binding Merger Implementation Deed whereby Orocobre will acquire 100 per cent of the shares of Galaxy Resources. The new company is expected to be included in the ASX 200 index and approaches the market value threshold for inclusion in the ASX 100 index. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
The company was incorporated in 1996 and is headquartered in Perth, Australia. On 19 April 2021, Galaxy announced that it had entered into a binding Merger Implementation Deed with Orocobre Limited (Orocobre) to merge the two companies by way of a scheme of arrangement (Scheme) under Part 5.1 of the Corporations Act. Pursuant to the Scheme, Orocobre will acquire all of the fully paid ordinary shares in Galaxy (Galaxy Shares) subject to the satisfaction of certain conditions, including approval of the Scheme by Galaxy Shareholders and the Supreme Court stop loss hunting of Western Australia (Court). The ASX lithium sector has seen some takeover activity in the past year as companies seek economies of scale and project synergies in order to get positioned for the next boom. “The merged entity’s growth opportunities in both brine and hard rock position it uniquely to take advantage of expected rising EV demand for lithium,” said Rowley. Participation in the merger will provide significant benefits to Galaxy Resources shareholders in being part of a larger diversified group and help to advance its projects’ development.
Solay is to oversee the integration process for the new merged company and with its board, determine an optimal management team that draws from employees of both companies. Galaxy Resources Limited engages how to buy ark in the production of lithium concentrate and exploration of minerals in Australia, Canada, and Argentina. Its flagship project is the Sal de Vida project located in Catamarca province, Argentina.
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