Media Release: Clayton Utz advises Tianqi Lithium Energy Australia on its bid for ASX-listed Essential Metals Limited

12 Jan 2023
Time to read: 1 minutes

Clayton Utz has advised Tianqi Lithium Energy Australia (TLEA) on its bid to acquire all shares in ASX-listed Essential Metals Limited (ASX: ESS) by way of scheme of arrangement. The transaction was announced to the market on 9 January.

Perth-based Corporate partner Liz Humphry, together with senior associate Georgia Mazzega and lawyers Tashreen Tourabaly and Tess Dillon, advised on the deal.

Under the scheme, Tianqi will pay A$0.50 cash per Essential Metals share, valuing Essential Metals at approximately A$136 million. The newly announced scheme is subject to a number of conditions, including approval by Essential Metals shareholders at a general meeting expected to be held in April.

TLEA is an incorporated joint venture owned by Tianqi Lithium Corporation (51%), a global energy materials company listed on the Shenzhen and Hong Kong Stock Exchanges, and IGO Limited (ASX: IGO) (49%), a mining and processing company which produces metals critical for clean energy.

TLEA owns an integrated lithium business, including a 51% interest in the Greenbushes Lithium Operation and 100% of the Kwinana Lithium Hydroxide Refinery, both located in Western Australia. Amongst other projects, Essential Metals owns 100% of the Pioneer Dome Lithium Project. The scheme supports TLEA’s strategic focus on lithium projects in Western Australia and strengthens its world-class asset portfolio, which includes the largest lithium mine in the world.

Commenting on the firm's role, Liz said:

We are very pleased to have advised our long-term client Tianqi on this exciting acquisition, which highlights TLEA’s strategic focus on lithium projects in Western Australia bringing new resources to production. It is fantastic to continue to work with Tianqi and we extend our congratulations to them on this transaction.

Get in touch

Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.