May 6 (Reuters) - China's Ganfeng Lithium, one
of the world's top lithium producers, on Thursday said it had
offered to buy the shares it does not already own in
Mexico-focused Bacanora Lithium for up to 190 million
pounds ($264.5 million).
The deal, which values Bacanora at up to around 267 million
pounds, follows the announcement of merger between lithium
producers Galaxy Resources and Orocobre Ltd
last month as demand for the key ingredient in electric vehicle
batteries surges after a three-year downturn.
Bacanora's current market capitalisation is 148.67 million
pounds, according to Refinitiv Eikon data.
Ganfeng, which in February announced a plan to raise its
stake in Bacanora from 17.41% to 28.88%, will acquire the
remaining shares in the company for 67.5 pence per share, a
joint statement said. The increase in Ganfeng's stake to 28.88%
is expected to complete shortly, it added.
London-listed Bacanora, which aims to start production from
its Sonora lithium project in Mexico in 2023, was trading down
1.7% at 44.25 pence around noon on Thursday, about one-third
lower than Ganfeng's offer price.
Jiangxi-based Ganfeng said in late March it
planned to boost production capacity roughly fivefold to 600,000
tonnes of lithium carbonate equivalent (LCE) annually, without
providing a timeframe.
($1 = 0.7184 pounds)
(Reporting by Tom Daly; additional reporting by Zandi Shabalala
and Clara Denina; Editing by Kirsten Donovan)