Australia's Galan Lithium (GLN.AX), opens new tab said on Thursday that it rejected an offer from Zhejiang Huayou Cobalt Co (603799.SS), opens new tab and Renault Group (RENA.PA), opens new tab to acquire the lithium explorer's stake in its Argentine assets for $150 million in cash. Galan Lithium described the offer as "opportunistic" and "undervalued", adding that it was for the purchase of the company's entire interest in the Hombre Muerto West (HMW) and Candelas projects in Argentina.
Shares of Galan were up 38.1% at A$0.145, as of 0111 GMT, while the broader benchmark index (.AXJO), opens new tab was down 1.5%. The stock climbed to its highest level since early January. Last August, EnergyX, a lithium technology startup company, made a $150 million offer to purchase Galan's Argentine assets. The Hombre Muerto West project, Galan's flagship project, opens new tab, is located near lithium projects and owned by Arcadium Lithium and Posco Holdings (005490.KS), opens new tab. Posco is an investor in EnergyX.
