Ashurst has advised Sichuan Tianqi Lithium Industries Inc (Tianqi Lithium) in relation to its RMB¥3.68bn (A$646 million) acquisition of a 65% interest in Talison Lithium Limited.
Tianqi Lithium is a public company listed on the Shenzhen Stock Exchange and the world largest lithium chemical producer. It is 63.75% owned by Chinese company Chengdu Tianqi Industry (Group) Co. Ltd (Chengdu Group).
Lead partner on the matter, Murray Wheater said: “This is a significant transaction for our China practice team and gave us an opportunity to showcase our broader international capability. We are delighted to have been able to work on a matter of such strategic importance for Tianqi Lithium with co-counsel by Zhong Lun Law Firm.”
The Chengdu Group had acquired 100% of the interest in Talison through a scheme of arrangement and Talison was delisted from the Toronto Stock Exchange in March 2013. After the completion of the Talison acquisition, Tianqi Lithium then entered into an agreement with the Chengdu Group to acquire 65% of the interest in Talison. The remaining 35% interest in Talison was acquired by China Investment Corporation.
Tianqi Lithium will fund the transaction through a combination of internal working capital and funds to be raised from private placements made by Tianqi Lithium to no more than 10 institutional investors.
The Ashurst team who advised on the deal included partner Murray Wheater, senior associate Raymond Lou and lawyers Lim Zang and Gil Huang (Sydney), and partner Michael Sheng and foreign lawyer Frank Zhuang (Shanghai). Partner Katie Winterbourne and senior associate Claire Woodland provided tenement and environmental advice.
