By: Reuters

Australia's Global Lithium Resources GL1.AX agreed on Tuesday to a nearly A$333 million ($237 million) takeover by a local unit of UAE-based battery materials firm Titan Lithium Group, sending its shares soaring about 50%.

Here are some more details:

Under the agreement, Titan Australia Mining would pay A$1.15 per share, a premium of nearly 73% to the stock's last close on September 18.

Titan Lithium is developing a large-scale lithium refinery in Abu Dhabi to produce battery-grade lithium carbonate and hydroxide, used in electric vehicles (EVs).

The acquisition would give Titan exposure to a large Australian lithium resource at a time when slowing EV sales have weighed on sector valuations, even as long-term demand prospects remain supported by the energy transition and growth in battery storage.

Global Lithium is backed by billionaire Chris Ellison, whose mining firm Mineral Resources MIN.AX holds a stake of more than 9% in the lithium developer.

The company said the deal would offer shareholders cash certainty given volatile lithium prices and the development and construction risks tied to its Manna lithium project in Western Australia.

The company board unanimously recommended shareholders vote in favour of the scheme, saying it is in their best interest.

Shares of Global Lithium ended nearly 50% higher at A$0.995, their highest close since early January 2024.
($1 = 1.4051 Australian dollars)

(Reporting by Aamir Shaik Khalid in Bengaluru; Editing by Subhranshu Sahu)