Tianqi Lithium Industry and Tibet Mining Competition Lithium Mine

On August 7th, the last day of the registration of the Zhabuye Lithium High-Tech Co., Ltd. (hereinafter referred to as Zhabuye Lithium) in Tibet, the board of directors of Tianqi Lithium passed a proposal and decided to use 400 million yuan. The cap is involved in the bidding for a 20% stake in Zhabuye Lithium.

On August 8th, Zhabuye's current absolute controlling share of East and West Tibet Mining Co., Ltd., its shareholders 'assembly has passed a resolution to bid 20 % of Zhabuye's lithium industry with a ceiling of 556 million yuan, which is more than Tianqi's lithium industry. 156 million.

The reporter noted that Tianqi Group, the major shareholder of Tianqi Lithium Industry, intends to become the second largest shareholder of Tibet Mining by means of a fixed increase. Tibet Mining and Tianqi Lithium competed on the same platform and raised the share price of Zhabuye Lithium. For Tianqi Group, one party wins the fish; the other party wins is the bear paw, and the two cannot have both.

Tianqi Lithium quotation 400 million

According to the public information of the Southwest Stock Exchange, Tibet Mining Development Corporation plans to transfer 20 % of the shares of Zhabuye, which it holds, with a listing price of RMB 31 million and a trading margin of RMB 50 million. The listing time is July 11, 2014. The expiration date is August 7.

The announcement shows that Zhabuye's lithium industry is mainly engaged in the development, production and sales of lithium mines, boron mines, lithium boron series products, inorganic salts, and Salt Lake biological resources and products. As at 30 April 2014, its net assets amounted to $738.0371 million, its net assets were valued at $13.8932338 million and its appreciation rate was 188 per cent.

Although Zhabuye's lithium industry is recognized as a lithium mine treasure in the industry, in fact, Zhabuye is still far from being developed. In 2013, Zhabuye's operating income and net profit were 9,669,700 yuan and 8,13,600 yuan, respectively. But that doesn't stop the competition for capital.

BYD obtained an 18 % stake in Zhabuye's lithium industry four years ago, and Tibet Mining, which has a geographical advantage, obtained a controlling stake in Zhabuye's lithium industry with a shareholding ratio of 50.72 %. Now that 20 % of its stake is on the shelves, tianqi lithium has decided to take a share, while Tibet mining is preparing to tighten its grip.

Tianqi Lithium announced today that the board of directors agreed that the company should sign up to participate in the purchase and transfer of 20 % equity projects in Shigatse, Tibet, and authorize the management of the company to determine the total bid amount within a range of 40 million yuan on the basis of a listing price of 310 million yuan.

Tianqi Lithium said that if the 20 % stake in Zhabuye's lithium industry is successful, it will help enrich the source of lithium concentrate raw materials, improve the layout of the industrial chain, further strengthen the foundation for continuous development, and improve overall competitiveness.

Prior to this, on July 24, Tibet Mining announced that the company's selection of suitable strategic investors in the lithium industry is related to the company's sustainable development. In order to ensure the company's strategic safety of lithium resources, The shareholders 'meeting is requested to request the shareholders' assembly to authorize the board of directors to exercise the right of first refusal on the transfer of 20 % equity of Zhabuye's lithium industry by the mining company within a trading price of no more than 556 million yuan.

On August 8, Tibet Mining issued an announcement. The motion was passed by the voting shareholders at the meeting and the support rate was 98.99 %.

Tianqi Group's dilemma

"The Tibetan mining industry does not exceed 556 million, and the Tianqi lithium industry still wants to win 400 million? Some investors mentioned this in the stock market. If you look at the highest price of 556 million in Tibetan mining, the odds of the Tianyi lithium industry are indeed not great.

Maybe that's why, Tianqi Lithium also mentioned in the announcement the existence of "uncertainty" in its bid: the final transaction price may be transferred by agreement(only to one transferee), online bidding or multiple quotations(to more than two eligible intended transferees). OK, but the company's bidding transaction price does not exceed 40 million yuan; There is still uncertainty about the success of this equity transfer.

Tianqi Lithium and Tibet Mining competed for a 20 % stake in Zhabuye's lithium industry. In addition to the management of the two companies, the most nervous is the Tianqi Group, a large shareholder of Tianqi Lithium.

On July 28, Tibet Mining issued no more than 49.1557 million A-shares to three specific target groups, including the large stocks of East, West and Tibet Mining Corporation. Tianqi Group and Tibet Investment Company respectively subscribed for 1913.88 shares and 956.94 shares with cash of 200 million yuan and 100 million yuan respectively. If the increase is completed, Tianqi Group, which holds 1913,8800 shares of Tibet Mining, will become the second largest shareholder of Tibet Mining.

Tianqi Group, which aims to become the second shareholder of Tibet Mining, is now facing the situation where Tianqi Lithium and Tibet Mining are competing on the same stage. Whoever wins will have to give higher prices than the other side. This situation is clearly not what Tianqi Group would like to see.

However, some market analysts said that this can also be interpreted as Tianqi Group's second-hand preparation. Even if Tianqi Lithium failed to acquire a 20 % stake in Zhabuye's lithium industry, Tianqi Group can indirectly obtain the supply of resources for Zhabuye's lithium industry through its shareholding in Tibet Mining.

The page contains the contents of the machine translation.