Azure Minerals Ltd (ASX: AZS) shares have returned from their trading halt and are rocketing higher.
In morning trade, the lithium explorer's shares are up 12% to $2.63.
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Why are Azure Minerals shares rocketing?
Investors have been buying Azure Minerals shares today after the company confirmed speculation that it was a takeover target.
According to the release, the company previously received expressions of interest from Sociedad Química y Minera de Chile (NYSE: SQM) regarding a possible change of control transaction.
The most recent expression of interest was received at the weekend and had an indicative offer price of $2.31 cash per Azure Minerals share. Management notes that these approaches have been non-binding and are highly conditional.
Following careful consideration of these approaches and in light of the rapidly evolving understanding of the potential of the 60% owned Andover Lithium Project in Western Australia, management determined that the approaches did not warrant further engagement and no further discussions have occurred. Particularly given that Azure Minerals shares have been trading well ahead of this takeover offer price thanks to the recent release of numerous highly promising lithium drilling results.
What's next?
Despite rejecting the offers, the company's relationship with Sociedad Química y Minera de Chile remains both supportive and constructive.
Interestingly, the company has retained Barrenjoey Capital Partners and Corrs Chambers Westgarth to provide financial and legal advice in relation to the expressions of interest. This could be a sign that it feels that Sociedad Química y Minera de Chile could return with a better offer in the future.
In the meantime, management advised that it will continue to work towards further delineating the lithium potential of Andover.
