Merger between Galaxy Resources (ASX:GXY) and Orocobre (ASX:ORE)

Company News

by Adrian Tan

Galaxy Resources (ASX:GXY) and Orocobre (ASX:ORE) have agreed to a proposed AU$4 billion merger, pursuant to which Orocobre will acquire 100 per cent of the shares in Galaxy. The merger will create the world's fifth-largest lithium chemicals company.

Galaxy shareholders will receive 0.569 Orocobre shares for each Galaxy share held.

As part of the proposed scheme, Martín Pérez de Solay will remain CEO and Managing Director, with a board and management team drawn from the combined group. The company's head office will be in Buenos Aires, with a corporate headquarters on the Australian east coast. A new name for the merged entity will be selected in due course.

Shares in Orocobre (ASX:ORE) are trading 26 cents higher at $6.46.

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.