Galan Lithium (ASX:GLN) has rejected a US$150 million (AU$240 million) cash bid from China’s Zhejiang Huayou Cobalt Co and France’s Renault Group to acquire its Hombre Muerto West and Candelas lithium brine projects in Argentina, The West Australian reports.
Described as unsolicited, conditional, and non-binding, the offer from battery materials giant Zhejiang Huayou and EV manufacturer Renault was deemed “opportunistic” and “undervalued,” the report noted.
Galan and its advisors refused the offer, asserting confidence in the long-term value of its flagship Hombre Muerto West project, which is nearing production of 5,400 tonnes per annum (tpa) of lithium carbonate equivalent. They believe the project holds greater potential to deliver superior returns for shareholders.
