While there are a number of ASX lithium stocks rising on Wednesday, few are climbing as strongly as Atlantic Lithium Ltd (ASX: A11) shares.
The lithium explorer's shares have really caught the eye today after jumping 43% to 55 cents.
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Why is the ASX lithium stock surging?
Investors have been buying Atlantic Lithium shares after it became the latest lithium company to receive a takeover offer.
This follows M&A approaches for Allkem Ltd (ASX: AKE), Azure Minerals Ltd (ASX: AZS), and Liontown Resources Ltd (ASX: LTR) this year.
However, Atlantic Lithium is not in the mood to be taken over. At least not that the price being offered.
According to the release, the company has rejected a conditional and non-binding offer from major shareholder Assore International to acquire it for 33 British pence (A$0.63) per share. This represents a 64% premium to its last close price.
The Ghana-focused ASX lithium stock explained why it rejected the offer. It said:
The Atlantic IBC and its advisers gave careful consideration to both the NBIO and Prior NBIO, and determined in each instance that it undervalued Atlantic Lithium and, therefore, was not in the best interests of shareholders, having regard to the near-term producer status of the project, the status of the pending investment from the Minerals Income Investment Fund and the positive near-term outlook for lithium project developers.
The NBIO and Prior NBIO were both subject to a number of conditions before they would become binding, including the Atlantic Lithium board unanimously recommending the offer, providing exclusive due diligence to Assore's satisfaction, Foreign Investment Review Board approval and entry into a definitive and mutually acceptable scheme implementation agreement.
