Tecpetrol Investments, a subsidiary of the Techint Group, has submitted a cash offer for the purchase of all existing common shares of Alpha Lithium Corporation (NEO: ALLI | OTC: APHLF | FRB: 765). The offer, set at C$1.24 per share, is made directly to Alpha Lithium’s shareholders, providing them a chance to influence the future of their investment.
Tecpetrol’s attempts to engage with Alpha Lithium have, so far, been met with silence. In response, Tecpetrol decided to extend a direct offer and is according to the company willing to increase the offer price if valuable insights can be gained from a meaningful negotiation.
Tecpetrol aims to develop Alpha Lithium’s lithium assets responsibly, to strengthen the Western battery supply chain. This aligns with Canada’s critical minerals strategy and supports the broader green and digital economy.
The offer provides an immediate cash payment and liquidity, reducing the risks associated with a lithium exploration company in its early stages. Tecpetrol believes that an asset-level transaction could potentially limit the benefits to shareholders presented by their proposal. The offer comes without a financing condition, as Tecpetrol has the financial resources to fulfill it.
This aggressive acquisition strategy from Tecpetrol indicates a clear intention of a potential hostile takeover. If Tecpetrol can sway a significant number of Alpha Lithium’s shareholders to accept their cash offer, they may gain controlling interest in the company, even without the current board’s consent. Such a development would showcase Tecpetrol’s resolve to secure the lithium assets, irrespective of the willingness of Alpha Lithium’s management to cooperate.