アルケムとリベントが世界をリードする総合リチウム化学メーカーを設立

フィラデルフィア、2023 年 5 月 10 日 /PRNewswire/ —

アルケムとリベントは、合併会社の評価額を 106 億米ドル (157 億豪ドル) とする全株式対等合併で統合する最終合意を発表¹

主なハイライト

• 世界有数のリチウム化学メーカーを誕生させ、2022 年予想の合計収益は約 19 億米ドル^[2]、調整後 EBITDA は約 12 億米ドルとなる
• 閉店後すぐにビジネスクリティカルな規模とグローバルな能力を強化し、より回復力のあるサプライチェーンで顧客にサービスを提供する能力を強化します。
• 垂直統合されたビジネス モデルにより、運用の柔軟性が向上し、バリュー チェーン全体でより大きな価値を獲得できる可能性が得られます。
• アルゼンチンとカナダの地理的に隣接した高品質、低コストの資産ポートフォリオは、CY’27E^[3]までに約250ktpa LCEの生産能力を実現すると予想される魅力的な成長プロジェクトの強力なパイプラインの開発を加速し、リスクを軽減する機会を生み出します。
• 主にアルゼンチンとカナダでの資産の近接性と共同開発により、年間約 1 億 2,500 万米ドル (税引前) のランレート運用相乗効果と、約 2 億米ドルの一時的な資本節約が見込まれます。 CY’27E以降もさらなる相乗効果が期待される
• 強固なバランスシートとキャッシュフロー創出を組み合わせた財務上の柔軟性により、成長計画の加速を実現します
• 持続可能性と責任ある成長への揺るぎない取り組みにより、株主、顧客、従業員、地域社会への価値提案を強化

Allkem (ASX:AKE) と Livent (NYSE:LTHM) は本日、両社を統合して世界有数のリチウム化学品メーカー (「NewCo」) を創設するための最終契約 (「取引契約」) の署名を発表しました。 ”）。この取引は2023年末までに完了する予定で、全株式の対等合併が完了すると、Allkemの株主はNewCo4の約56％を所有し、Liventの株主は約44％を所有することになる。^[4]

世界的なリチウム化学企業の 2 社である Allkem と Livent は、規模と専門知識を備えた垂直統合型ビジネス モデルの下で、高度に補完的な資産、成長プロジェクト、抽出と加工にわたる運営スキルを組み合わせて、急速に増大するリチウム化学製品の需要に対応します。 。合併後の会社は、主要な地域、製品、顧客にわたって分散された低コスト資産の重要な拠点を持つことになります。アルゼンチンとカナダの特定の資産が近接していることを考慮すると、他の予想される商業的相乗効果に加えて、大幅なコスト相乗効果と設備投資の節約が、将来の拡張プロジェクトと運営を共同開発してリスクを軽減する機会によって実現されることが期待されます。

Livent は、エネルギー貯蔵やその他の特殊用途向けにさまざまなリチウム化学物質を製造してきた 80 年近くの経験を持つ、リチウム処理技術の世界的リーダーです。 Allkem は、従来の塩水ベースのリチウム抽出、硬岩採掘、およびリチウム処理における補完的な専門知識をもたらします。 Livent の技術的および商業的能力と深い顧客関係、および Allkem の大規模で多様なリソースベースと重要な成長パイプラインにより、NewCo は電気自動車 (「EV」) とエネルギー貯蔵から予想されるリチウム需要の成長を活用する有利な立場にあるでしょう。解決策。

リベントの社長兼最高経営責任者ポール・グレイブス氏は次のように述べています。「リベントとアルケムが力を合わせて、EV、クリーンエネルギー、より持続可能な未来への移行を支援するという今後の展開に興奮しています。私たちは、この重要な世界的なエネルギー転換を可能にするために必要なリチウムを提供することにより、脱炭素政策の加速においてさらに大きな役割を果たすことを楽しみにしています。統合会社として、当社は規模、製品範囲、地理的範囲、および実行能力を強化し、急速に増大するリチウム化学物質に対する顧客の需要に対応します。この取引は、当社の高度に補完的なビジネスモデルと、クラス最高の技術、資産、人材を含む当社の総合力を活用し、EVおよびエネルギー貯蔵アプリケーションの成長を推進する業界の主導力となるでしょう。私たちは力を合わせて成長計画を加速し、どちらかが単独で行うよりも多くのリチウムを、より確実に、より迅速に供給することができます。私たちは共に、責任を持って成長し、事業を展開するコミュニティをサポートすることに尽力しており、共通の長期ビジョンを実行することを楽しみにしています。」

アルケムのマルティン·ペレス·デ·ソライ最高経営責任者（CEO）は次のように述べた。「アルケムとリベントの合併は、説得力のある戦略的論理を備えた革新的なものであり、会社の成長に向けた当社の取り組みにおける重要なマイルストーンとなる。当社は、アルケムの実証済みの統合実績を基に、高度に補完的な 2 つの事業を統合し、世界をリードするリチウム化学会社を設立します。垂直統合された NewCo は、当社の多様な顧客ベースへの高品質で付加価値の高い製品の提供を改善し、材料の相乗効果を解き放ちます。この統合により、プロジェクト開発、製品イノベーション、マーケティングにおける強力な専門知識を持つチームが集結し、当社の成長の次の段階をより迅速かつリスクなく実現できるようになります。アルケム社の株主は、アルケム社が米国とオーストラリアに上場する真の世界的企業に変貌するにつれて、この取引から大きな利益を享受できると私は信じています。私たちは安全、品質、生産性に対する共同の取り組みを維持し、規模の拡大を通じて従業員、顧客、パートナー、そして私たちが事業を展開しているコミュニティの成果も向上させることができます。」

組み合わせによる戦略的利点

• ビジネスに不可欠な規模を強化し、増大する顧客需要に対応する能力を向上させた世界有数のリチウム化学メーカーを創設

  • 世界最大級のリチウム預金基地を備えた大規模、高品質、低コストの資産フットプリント

  • 複数のリチウム化学品製造施設により、幅広いリチウム機能性化学品を世界中に提供可能

  • アルゼンチンと北米における NewCo の地理的に隣接する資産ポートフォリオによる規模の経済とリソースの増大

  • 供給の確実な安全性とより現地化されたサプライチェーンに顧客が注目する中、増大する地域需要に対応する能力を備えた、アメリカ大陸を拠点とする主要なリチウムプラットフォーム

  • バッテリーグレードのリチウムサプライヤーとしての地位を確立

  • 両社の強力な顧客関係により、EVおよびエネルギー貯蔵バリューチェーン全体にわたる大規模かつ成長を続ける世界的な顧客ベース

• 高度に補完的で垂直統合されたビジネスモデル
  • 最も広範な製品提供により、リチウムのバリューチェーン全体の垂直統合を可能にします
  • リソース資産と本番資産の両方にわたって高い拡張性を備えています。運用の柔軟性と信頼性が即座に向上し、コストが削減され、より大きな価値が得られることが期待されます。
  • 大手電池メーカーやEV OEMが求める高品質の製品を生産する実証済みの能力を備えた、塩水および水酸化物処理の補完的な専門知識
  • 革新的で持続可能な製品とプロセスを開発するための研究開発能力の拡大

• 成長を加速するためのより優れた能力と実行専門知識

  • 成長コミットメントをより迅速に実現し、CY’27E5までに約250ktpa LCEへのリスクを回避できるパスを実現
  • すべてのステークホルダーに価値を生み出す高度な成長プロジェクトの重要なパイプライン
  • 硬岩採掘、従来型および DLE ベースのプロセス、炭酸リチウムおよび水酸化リチウムの製造における補完的な専門知識

• EVおよび蓄電池ソリューションを通じて脱炭素化の機会を捉える世界的リーダーの育成

  • 責任を持って成長し、環境管理、持続可能性、コミュニティ開発、コーポレートガバナンス全体にわたるベストプラクティスを追求するという共通のコミットメントを備えた、セクターをリードするESGポリシー

  • 透明性、安全性、責任ある業務、厳格なサプライチェーン、コミュニティの関与と開発を推進するための業界の取り組みへの参加

重大な経済的メリット

この合併により、以下を通じて両社の株主に多大な価値が創出されることが期待されます。

• 資産の相乗効果的な組み合わせと近接性による価値創造。CY’27E以降もさらなる相乗効果が期待される
  • SG&A、資産の最適化、物流と調達の節約により、年間約 1 億 2,500 万米ドル (税引き前) の運用コストの相乗効果が見込まれます。相乗効果のかなりの部分は、重複コストの削減、調達、現場管理、輸送、およびサル・デ・ヴィダの物流機能の改善を通じて実現されることが期待されています。
  • オンブレ・ムエルトとケベック、そして運営の緊密な統合を通じて。年間ランレート税引前営業コストの相乗効果の大部分は 3 年以内に実現されると予想されます。技術的専門知識の共有、製品フローの柔軟性の向上、工場の最適化、マーケティング効率の向上により、さらなる相乗効果が期待されます。
  • NewCo は、運営の相乗効果に加えて、共有インフラの統合、建設と調達の合理化、オンブレ ムエルトとサル デ ヴィダでの補完的なエンジニアリング作業の活用により、一時的に資本支出を約 2 億米ドル削減することが見込まれています。また、ケベック州のスポジュメン資源からの材料を処理する同じ場所にあるスポジュメンから水酸化物への施設でも行われます。
• トランザクションメトリクス
  • 交換比率は、リスク調整後純資産価値（「NAV」）に対する各会社の推定相対寄与度に基づいて決定されます（シナジー発生前）
    この取引は、この取引により実現されると予想される重要な相乗効果を反映して、リベントとアルケムの両株主にとって、一株当たりのNAVベースで即座に増加することが期待されます（達成コストを差し引いた額）。
    この取引により、アルケムの株主は NewCo の約 56% を所有することになります。これに対し、1 か月間の出来高加重平均株価からは 53% が示唆されます。^[6]
• より強力な財務プロファイルにより、統合後の企業は成長を実現できる立場にあります
  • 合わせて 14 億米ドルの流動性と限られた負債を備えた強固なバランスシート^[7]
  • プラスのキャッシュフロー生成により、成長戦略を加速するために必要な財務力が得られます
• 投資家にとっての流動性の向上と株主ベースの多様化
  • ニューヨーク証券取引所（「NYSE」）でのプライマリー上場と、CHESS預託資産（「CDI」）を介したオーストラリア証券取引所（「ASX」）での外国免除上場を通じて、投資家にとって流動性が向上します。
  • S&P / ASX 200 指数への暗黙の総合時価総額および比例配分 CDI への米国指数への組み入れを求める

全株式非課税取引

• 株主にとって非課税取引となる予定の株式交換取引

トランザクション構造

NewCo は NYSE にプライマリー上場し、（Allkem 株主への CDI 発行を通じて）ASX での外国免除上場を維持します。本取引条件に基づき、特定の非適格管轄地域の株主を除き、既存の Allkem 株主は、保有する Allkem 普通株式 1 株につき NewCo ASX 上場 CDI を 1 株受け取ることになります (または、CDI の代わりに NewCo NYSE 上場株式 1 株を受け取ることを選択することもできます)。取引終了後、CDI の代わりに NewCo CDI の売却による現金収益を受け取る人。本合併に基づき、Livent株主は保有するLivent株式1株につきNewCo NYSE上場普通株式2.406株を受け取ることになる。取引後、アルケムとリベントの株主は、それぞれ合併後の会社の約56％と44％を所有することになると予想される。

ガバナンスとリーダーシップ

取引契約および本取引は、各社の取締役会によって全会一致で承認されており、アルケムの場合は、独立専門家がこのスキームがアルケムの株主にとって最善の利益であると結論付け、今後も結論を下すことを条件としています。
合併後の会社は、取締役会と経営陣の両方のレベルで実績と経験を積んだビジネス リーダーと、NewCo の事業拠点の多様で優秀なチームから恩恵を受けることになります。
NewCoはジャージー州ベイリウィックに設立され、本社は北米にあり、正確な所在地と社名は後日発表され、本社はアイルランドに置かれる予定です。
取引完了後、ピーター・コールマン氏がNewCoの会長に、ポール・グレイブス氏がNewCoのCEOに、ジルベルト・アントニアッツィ氏がNewCoのCFOに就任する。 NewCo 取締役会は、Allkem が指名した取締役 7 名と Livent が指名した取締役 7 名の計 14 名で構成されます。商業チーム、運営チーム、資本展開チームは両社の代表者で構成されます。 Allkem CEO の Martín Pérez de Solay は、取引完了後のスムーズな統合プロセスの促進を支援するコンサルティング サービスを NewCo に提供します。

Closing Conditions, Other Key Terms and Timing

Closing of the Transaction is subject to the satisfaction or waiver of customary closing conditions, including receipt of regulatory approvals, approval by both Livent and Allkem shareholders, the Independent Expert concluding that the Scheme is in the best interest of Allkem shareholders and not changing, withdrawing, or qualifying that conclusion, tax opinion delivery, and Australian tax class ruling confirmation, and Australian Court approval.

Allkem and Livent shareholders do not need to take any action at this time. An explanatory statement and notice of meeting containing important information about the Scheme (“Scheme Booklet”) will be dispatched to Allkem Shareholders and released on ASX in due course, likely in the second half of calendar year 2023. A proxy statement/prospectus containing important information about the Merger will be dispatched to Livent Shareholders and filed with the U.S. Securities and Exchange Commission (“SEC”) in due course. Subject to the satisfaction or waiver of the conditions to closing, the Transaction is expected to close by the end of calendar year 2023.

The Transaction Agreement includes reciprocal exclusivity arrangements (including notification obligations) in favour of both parties, a matching right regime in favour of both parties and termination fees in favour of both parties. The exclusivity arrangements are subject to customary exceptions that enable the directors of Allkem and Livent to comply with their respective fiduciary and / or statutory duties.

The full terms of the Transaction, including the closing conditions, are set out in the Transaction Agreement, a copy of which is attached to this announcement.

Advisors

Gordon Dyal & Co., LLC. is acting as exclusive financial advisor and Davis Polk & Wardwell LLP and Allens are acting as legal counsel to Livent.

UBS Securities Australia Limited and Morgan Stanley & Co. LLC are acting as financial advisors and King & Wood Mallesons and Sidley Austin LLP are acting as legal counsel to Allkem.

Analyst and Investor Briefing

Livent and Allkem will each host a conference call for their respective analysts and investors in the U.S. and Australia. Management from both companies will participate.

The Livent hosted joint conference call will be held at 8:00 AM Eastern time to discuss the transaction. Participants can access the call via webcast at https://events.q4inc.com/attendee/784082116. The live webcast and related presentation materials can be accessed through the Investor Relations section of the website ir.livent.com and will be archived for a period of 12 months.

The Allkem hosted joint conference call will be held at 9:30 AM AEST on May 11th to discuss the transaction. Participants can access the call via webcast at https://registrations.events/direct/OCP60313. The live webcast and related presentation materials can be accessed through the Investor Relations section of the website allkem.co/investors and will be archived.

For more information on this announcement, please refer to the transaction website: www.globallithiumleader.com.

Livent Contacts

Investors:

Daniel Rosen +1 215 299 6208
[email protected]

Media:

Juan Carlos Cruz +1 215 299 6725
[email protected]

Teneo

Andrea Calise +1 917 826 3804
[email protected]

Spencer Smith +1 646 531 8079
[email protected]

Allkem Contacts

Investors:

Andrew Barber +61 418 783 701
[email protected]

Community Affairs:

Karen Vizental +54 9 114 414 4702
[email protected]

Media:

GRACosway
Ben Wilson +61 407 966 083
[email protected]

Max Hewett +61 432 332 215
[email protected]

About Livent

For nearly eight decades, Livent has partnered with its customers to safely and sustainably use lithium to power the world. Livent is one of only a small number of companies with the capability, reputation, and know-how to produce high-quality finished lithium compounds that are helping meet the growing demand for lithium. The Company has one of the broadest product portfolios in the industry, powering demand for green energy, modern mobility, the mobile economy, and specialized innovations, including light alloys and lubricants. Livent has a combined workforce of approximately 1,350 full-time, part-time, temporary, and contract employees and operates manufacturing sites in the United States, England, China, and Argentina. For more information, visit livent.com

About Allkem

Allkem is a specialty lithium chemicals company with a global portfolio of diverse and high-quality lithium chemicals. Headquartered in Buenos Aires, Argentina, the company’s unique portfolio includes lithium brine operations in Argentina, a hard rock lithium operation in Australia, a hard rock development project in Québec, and a lithium hydroxide conversion facility in Japan. Development is underway across the globe to increase international scale and product flexibility to meet significant projected demand growth that is underpinned by a global transition to a net zero carbon future. Allkem’s pillars of success are built on safety, sustainability, cost leadership, and product quality, through relations with our people, partners, customers, and communities. For more information, visit allkem.co.

Important Information and Legal Disclaimer:

Important Notices

This announcement is a joint announcement by Allkem Limited ACN 112 589 910 (Allkem) (authorised for release by Mr. Martín Pérez de Solay, CEO and Managing Director of Allkem) and Livent Corporation (Livent).

This announcement has been prepared in relation to the proposed combination of Allkem and Livent under a newly created holding company, incorporated in the Bailiwick of Jersey (NewCo), effected through (1) the acquisition of shares of Allkem by NewCo by way of scheme of arrangement under Part 5.1 of the Corporations Act 2001 (Cth) (the Scheme); and (2) the merger of Livent and a newly incorporated entity that will be a wholly-owned subsidiary of NewCo (“US Merger Sub”) (the “Merger”, and the Scheme and the Merger together, the “Transaction”). Under the Scheme, NewCo would acquire 100% of the fully paid ordinary shares in Allkem in exchange for the issue to Allkem shareholders of new fully paid ordinary shares in NewCo or CHESS Depositary Interests in respect of fully paid ordinary shares in NewCo. Under the Merger, Livent would merge into US Merger Sub with Livent shares being converted into the right to receive new fully paid ordinary shares in NewCo.

The Transaction is subject to the terms and conditions described in the Transaction Agreement entered into among Allkem, Livent, and NewCo on or about the date of this announcement (the “Transaction Agreement”). A copy of the Transaction Agreement is attached to this announcement and is available on the Australian Securities Exchange (“ASX”)’s website (at www.asx.com.au), on the website maintained by the U.S. Securities and Exchange Commission (the “SEC”) (at www.sec.gov), and on the System for Electronic Document Analysis and Retrieval (SEDAR) website of the Canadian Securities Administrators (at www.sedar.com).

Allkem and Livent have jointly prepared this announcement based on information available to them as at the date of this announcement. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the maximum extent permitted by law, none of Allkem or Livent, their respective directors, employees, agents or advisers, or any other person, accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it.

Summary information only; not an offer

This announcement and the information contained in it is provided for information purposes only and is not intended to be and shall not constitute a solicitation of any vote or approval, or an offer to sell or solicitation of an offer to buy, or an invitation or recommendation to subscribe for, acquire or buy securities of Allkem, Livent or NewCo, or any other financial products or securities, in any place or jurisdiction, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made in the United States absent registration under the U.S. Securities Act of 1933, as amended (the Securities Act), or pursuant to an exemption from, or in a transaction not subject to, such registration requirements.

The announcement contains summary information only, and further detailed information about Allkem, Livent, NewCo and the Transaction will be provided in the explanatory statement and notice of meeting to be dispatched to Allkem shareholders in relation to the Scheme and in the proxy statement/prospectus and other relevant materials to be dispatched to Livent stockholders and filed with the SEC in relation to the Merger.

Limitation on information in relation to Livent and its operations

All information in this announcement in relation to Livent and its operations – including in relation to or otherwise derived from historical production, historical costs and cash flows and other financial information, or production or development plans, or infrastructure or production capacity or capability, or any forward-looking statements relating to or extrapolated from any of that information – has been sourced from Livent.

Allkem has conducted due diligence in relation to the Transaction, but has not been, and is not, in a position to independently verify such information and, to the maximum extent permitted by law, makes no representation or warranty, express or implied, as to the fairness, accuracy, completeness or adequacy of any information relating to Livent or its operations.

Limitation on information in relation to Allkem and its operations

All information in this announcement in relation to Allkem and its operations – including in relation to or otherwise derived from historical production, historical costs and cash flows and other financial information, production or development plans, or infrastructure or production capacity or capability, or any forward-looking statements relating to or extrapolated from any of that information – has been sourced from Allkem.

Livent has conducted due diligence in relation to the Transaction, but has not been, and is not, in a position to independently verify such information and, to the maximum extent permitted by law, makes no representation or warranty, express or implied, as to the fairness, accuracy, completeness or adequacy of any information relating to Allkem or its operations.

Financial data

All references to “$” or “US$” or “USD” are to American dollars, being the lawful currency of the United States of America. All references to “A$” or “AUD” are to Australian dollars, being the lawful currency of Australia, unless stated otherwise. Any references to “¥” or “RMB” are to Chinese yuan, being the lawful currency of China, unless stated otherwise.

Any combined financial information included in this announcement is for illustrative purposes only and does not purport to be in compliance with Article 11 of Regulation S-X of the rules and regulations of the SEC. Rather, such information is a simple summation of Livent’s financial results under US GAAP and Allkem’s financial results under IFRS; such results may not be comparable and pro forma information under Article 11 may be materially different. Investors should be aware that financial data in this announcement includes “non-IFRS financial information” under ASIC Regulatory Guide 230 “Disclosing non-IFRS financial information” published by ASIC and also “non-GAAP financial measures” within the meaning of Regulation G under the U.S. Securities Exchange Act of 1934, as amended. Allkem and Livent believe the non-IFRS financial information and non-GAAP financial measures provide useful information to users in measuring the financial performance and conditions of Allkem, Livent and NewCo post-closing of the Transaction (together, the “Merged Group”). The non-IFRS and non-GAAP financial information does not have a standardised meaning prescribed by Australian Accounting Standards or US GAAP, respectively, and, therefore, may not be comparable to similarly titled measures presented by other entities, nor should they be construed as an alternative to other financial measures determined in accordance with Australian Accounting Standards or US GAAP. Investors are cautioned, therefore, not to place undue reliance on any non-IFRS financial information and ratios or non-GAAP financial measures included in this announcement.

Livent evaluates operating performance using certain non-GAAP measures such as EBITDA, which is defined as net income plus interest expense, net, income tax expense and depreciation and amortization; and Adjusted EBITDA, which is defined as EBITDA adjusted for restructuring and other charges, separation-related costs, COVID-19 related costs and other losses/(gains). Livent’s management believes the use of these non-GAAP measures allows management and investors to compare more easily the financial performance of its underlying business from period to period. The non-GAAP information provided may not be comparable to similar measures disclosed by other companies because of differing methods used by other companies in calculating EBITDA and Adjusted EBITDA. These measures should not be considered as a substitute for net income or other measures of performance or liquidity reported in accordance with US GAAP. A reconciliation of EBITDA and Adjusted EBITDA to net income is included in this announcement.

Reconciliations of Livent’s forward-looking non-GAAP measures to the most directly comparable measures prepared in accordance with GAAP are not being provided because Livent is unable to provide these reconciliations without unreasonable effort due to the uncertainty and inherent difficulty of predicting the occurrence, financial impact, and the periods in which the relevant adjustments would be recognized.

Non-IFRS information, including underlying earnings, has not been audited but have been extracted from Allkem’s periodic financial statements.

Forward-Looking Statements

This announcement contains forward-looking statements, including within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can often be identified by terms such as “may,” “will,” “appears,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern expectations, strategy, plans, or intentions. However, the absence of these words or similar terms does not mean that a statement is not forward-looking. All forward-looking statements are based on information and estimates available to Allkem or Livent at the time of this announcement and are not guarantees of future performance.

Examples of forward-looking statements in this announcement (made at the date of this announcement unless otherwise indicated) include, among others, statements regarding the future performance of the Merged Group, the perceived and potential synergies and other benefits of the Transaction, and expectations around the financial impact of the Transaction on the Merged Group’s financials. In addition, this announcement contains statements concerning the intentions, beliefs and expectations, plans, strategies and objectives of the directors and management of Allkem and Livent for Allkem, Livent and the Merged Group, the anticipated timing for and outcome and effects of the Transaction (including expected benefits to shareholders of Allkem and Livent), anticipated production, production capacity or construction or development commencement dates, costs or production outputs, capital expenditure and future demand for lithium, expectations for the ongoing development and growth potential of the Merged Group and the future operation of Allkem, Livent and the Merged Group.

Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those contemplated by the forward-looking statements as a result of a variety of known and unknown risks, uncertainties, and other factors (many of which are outside the control of Allkem, Livent and the Merged Group), some of which are described from time to time in Livent’s filings with the SEC and Allkem’s filings with the ASX, including Livent’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and Allkem’s Annual Report for the financial year ended 30 June 2022 (Appendix 4E), Half-Year Report for the half year ended 31 December 2022 (Appendix 4D), and March Activities Report for the quarter ended 31 March 2023, and future filings and reports by either Allkem or Livent.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement and may include statements regarding the expected timing and structure of the proposed transaction; the ability of the parties to complete the proposed transaction considering the various closing conditions; the expected benefits of the proposed transaction, such as improved operations, enhanced revenues and cash flow, synergies, growth potential, market profile, business plans, expanded portfolio and financial strength; the competitive ability and position of NewCo following completion of the proposed transaction; and anticipated growth strategies and anticipated trends in Livent’s, Allkem’s and, following the completion of the proposed transaction, NewCo’s business.

In addition, other factors related to the Transaction between Allkem and Livent that contribute to the uncertain nature of the forward-looking statements and that could cause actual results and financial condition to differ materially from those expressed or implied include, but are not limited to: the satisfaction of the conditions precedent to the consummation of the Transaction, including, without limitation, the receipt of shareholder and regulatory approvals on the terms desired or anticipated; unanticipated difficulties or expenditures relating to the Transaction, including, without limitation, difficulties that result in the failure to realize expected synergies, efficiencies and cost savings from the Transaction within the expected time period (if at all); potential difficulties in Allkem’s and Livent’s ability to retain employees as a result of the announcement and pendency of the Transaction; risks relating to the value of NewCo’s shares to be issued in the Transaction; disruptions of Allkem’s and Livent’s current plans, operations and relationships with customers caused by the announcement and pendency of the Transaction; legal proceedings that may be instituted against Allkem and Livent following announcement of the Transaction; funding requirements; lithium and other commodity prices; exploration, development and operating risks (including unexpected capital or operating costs); production risks; regulatory restrictions (including environmental regulations and associated liability, changes in regulatory restrictions or regulatory policy and potential title disputes) and risks associated with general economic conditions.

Additional factors that could cause actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements are detailed in the filings with the SEC, including Livent’s annual report on Form 10-K, periodic quarterly reports on Form 10-Q, periodic current reports on Form 8-K and other documents filed with the SEC.

There can be no assurance that the Transaction will be implemented or that plans of the directors and management of Allkem and Livent for the Merged Group will proceed as currently expected or will ultimately be successful. Investors are strongly cautioned not to place undue reliance on forward-looking statements, including in respect of the financial or operating outlook for Allkem, Livent or the Merged Group (including the realisation of any expected synergies).

Except as required by applicable law or the ASX Listing Rules, Allkem and Livent assume no obligation to, and expressly disclaim any duty to, provide any additional or updated information or to update any forward-looking statements, whether as a result of new information, future events or results, or otherwise. Nothing in this announcement will, under any circumstances (including by reason of this announcement remaining available and not being superseded or replaced by any other presentation or publication with respect to Allkem, Livent or the Merged Group, or the subject matter of this announcement), create an implication that there has been no change in the affairs of Allkem or Livent since the date of this announcement. The distribution of this announcement may be subject to legal or regulatory restrictions in certain jurisdictions. Any person who comes into possession of this announcement must inform himself or herself of and comply with any such restrictions.

Allkem / Nemaska Minerals and Production Capacity

Allkem has reported mineral resources under Australian standards, but neither Allkem nor Nemaska Lithium Inc. has reported any mineral resources in a manner compliant with SEC Regulation S-K Rule 1300. We expect that such entities will report S-K 1300-compliant resources in the registration statement for this transaction, but we can provide no assurances as to the level of such resources at this time. Accordingly, any production capacity and targets disclosed for future years represent estimates of capacity but there can be no assurances that the combined company will be able to achieve such production capacity. Livent is not treating such information as an estimate of Allkem or Nemaska mineral resources or reserves.

Production Targets

This announcement includes production targets of the Merged Group (or other forward-looking statements of that nature) (see pages 1 and 3 in particular, referred to as the “Key Production Target” in this Disclaimer). The information in this announcement that relates to the Key Production Target is derived from the ASX release entitled “Allkem and Livent to Create a Leading Global Integrated Lithium Chemicals Producer” dated May 10, 2023, which is available to view on https://www.allkem.co, www.asx.com.au, www.sedar.com (“Investor Presentation”). Allkem confirms that all material assumptions underpinning the Key Production Target in the Investor Presentation and required by ASX Listing Rule 5.16 continue to apply and have not materially changed.

Note on synergies

Please also refer to the individual Investor Presentations of Allkem and Livent released to ASX, furnished to the SEC and otherwise published, as applicable, simultaneously with this announcement for further information about the basis and assumptions underlying any statements about synergies that could be expected to be delivered and achieved by the Merged Group as a result of the Transaction.

No offer or solicitation

This communication is for informational purposes only and is not intended to be and shall not constitute a solicitation of any vote or approval, or an offer to buy or sell, or the solicitation of an offer to buy or sell, any securities, or an invitation or recommendation to subscribe for, acquire or buy securities of Allkem, Livent or NewCo, or any other financial products or securities, in any place or jurisdiction, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made in the United States absent registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or pursuant to an exemption from, or in a transaction not subject to, such registration requirements.

Additional information and where to find it

NewCo and Livent plan to file relevant materials with the SEC in connection with the Transaction, including a registration statement on Form S-4 that will contain a proxy statement/prospectus and other documents. NewCo and Livent will prepare and file the proxy statement/prospectus with the SEC, Livent will mail the proxy statement/prospectus to its stockholders and Livent and Allkem will file other documents regarding the proposed transaction with the SEC. This communication is not a substitute for any registration statement, proxy statement/prospectus or other documents that may be filed with the SEC in connection with the proposed transaction.

INVESTORS SHOULD READ THE PROXY STATEMENT/PROSPECTUS AND SUCH OTHER DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THE PROXY STATEMENT/PROSPECTUS AND SUCH DOCUMENTS, BEFORE THEY MAKE ANY DECISION WITH RESPECT TO THE PROPOSED TRANSACTION BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT NEWCO, LIVENT, ALLKEM, THE TRANSACTION AND RELATED MATTERS. The Form S-4, the proxy statement/prospectus, any amendments or supplements thereto and all other documents filed with the SEC in connection with the Transaction will be available when filed free of charge on the SEC’s web site at www.sec.gov. Copies of documents filed with the SEC by Livent will be made available free of charge on Livent’s investor relations website (at https://ir.livent.com/overview/default.aspx).

This presentation should be read in conjunction with Allkem’s other periodic and continuous public disclosures. Allkem’s announcements are lodged with ASX and are available on ASX’s website (at www.asx.com.au) and Allkem’s website (at www.allkem.co).

Further information about the Transaction (including key risks for Allkem shareholders) will be provided by Allkem to Allkem shareholders and released to ASX in due course, in the form of an explanatory statement (as that term is defined in section 412 of the Corporations Act) and notice of meeting (the “Scheme Booklet”). The Scheme Booklet will also include or be accompanied by an independent expert’s report that will opine on whether the Scheme is in the best interest of Allkem shareholders.

Further information about the Transaction (including key risks for Livent stockholders) will be provided by Livent to Livent stockholders and filed with the SEC in due course, in the form of a proxy statement/prospectus.

Participants in the Solicitation

Livent, Allkem, NewCo and certain of their respective directors and executive officers and other members of their respective management and employees may be deemed to be participants in the solicitation of proxies in connection with the Transaction. Information regarding the persons who may, under the rules of the Securities and Exchange Commission (“SEC”), be deemed participants in the solicitation of proxies in connection with the Transaction, including a description of their direct or indirect interests in the Transaction, by security holdings or otherwise, will be set forth in the proxy statement/prospectus and other relevant materials when it is filed with the SEC. Information regarding the directors and executive officers of Livent is contained in Livent’s proxy statement for its 2023 annual meeting of stockholders, filed with the SEC on March 16, 2023, its Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which was filed with the SEC on February 24, 2023, subsequent statements of beneficial ownership on file with the SEC and other filings made from time to time with the SEC. Information about Allkem’s directors and executive officers is set forth in Allkem’s latest annual report dated 25 August 2022, as updated from time to time via announcements made by Allkem on the Australian Securities Exchange. Additional information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of Livent security holders in connection with the Transaction, including a description of their direct or indirect interests, by security holdings or otherwise, will be set forth in the proxy statement/prospectus and other relevant materials when they are filed with the SEC. These documents can be obtained free of charge from the sources indicated above.

Adjusted EBITDA Reconciliation

ⁱ Combined CY2022A financials prepared on different accounting basis for Allkem and Livent. Combined metrics reflect the simple summation of the reported financial metric for Allkem and Livent and are not adjusted to be on the same accounting basis and do not reflect any Article 11 pro forma adjustments. Pro forma results could differ materially. Allkem metrics exclude divested Borax assets (divestiture was completed in December 2022). For combined adjusted EBITDA, metric is the sum of Livent’s adjusted EBITDA and Allkem’s reported EBITDAIX. EBITDAIX is defined as segment earnings before interest, taxes, depreciation, amortization, impairment, gains from financial instruments, foreign currency (losses)/gains, business combination acquisition costs, non-cash business combination adjustments, and share of associate losses. Please see the Financial Data section from the Important Information and Legal Disclaimer for further information.

¹ Based on the combined market capitalization of Allkem and Livent and a USD:AUD foreign exchange rate of 0.676. The market capitalization of Livent (US$5.1 billion) has been calculated by reference to the closing price of Livent shares on NYSE on May 9, 2023, of US$24.23 per Livent share and 209.5 million Livent fully diluted shares on issue. The market capitalization of Allkem has been calculated by reference to the closing price of Allkem shares on ASX on May 9, 2023, of A$12.83 per Allkem share and 641.5 million Allkem fully diluted shares on issue.
² Allkem’s results are based on its IFRS results for the LTM ended December 31, 2022 and are unaudited. The combined financial information is a simple summation of Livent’s and Allkem’s results for Livent’s fiscal year ended December 31, 2022 and Allkem’s twelve months ended December 31, 2022, and is not presented in accordance with Article 11 of Regulation S-X. Pro forma information prepared according to Article 11 of Regulation S-X may be substantially different from the combined information included in this announcement.
³ Refer to pages 23 to 28 of the Investor Presentation dated May 10th, 2023, which is available to view on www.allkem.co and www.asx.com.au, (Investor Presentation) for information underpinning the production targets, production capacities (and other forward-looking statements of that nature) for NewCo. Allkem confirms that all material assumptions underpinning the production targets, production capacities (and other forward-looking statements of that nature) of NewCo in the Investor Presentation continue to apply and have not materially changed. Refer to page 11 of the Important Information and Legal Disclaimer for further information in relation to the production targets of NewCo.
⁴ All ownership ratios in this release based on fully diluted share counts
⁵ Refer to pages 23 to 28 of the Investor Presentation for information underpinning the production targets, production capacities (and other forward-looking statements of that nature) for NewCo. Allkem confirms that all material assumptions underpinning the production targets, production capacities (and other forward-looking statements of that nature) of NewCo in the Investor Presentation continue to apply and have not materially changed. Refer to page 11 of the Important Information and Legal Disclaimer for further information in relation to the production targets of NewCo.
⁶ This implies a premium of approximately 14% to Allkem shareholders measured using volume weighted average share prices over one-month from April 10, 2023 to May 9, 2023. The premium is calculated assuming Allkem shareholders contribute their shares to the merged entity at an implied price of A$13.54 per share, calculated using the Livent one month volume average weighted price over the same period of US$21.81, the agreed exchange ratio of 2.406 NewCo shares per Livent share, and the daily USD:AUD foreign exchange rates over the period.
⁷ Merged group pro forma liquidity position based on: (i) Allkem’s available cash position as of March 31, 2023, as set out in Allkem’s March 2023 Quarterly Report, dated April 20, 2023 which was prepared in accordance with the requirements of the Corporations Act 2001 (Cth), Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) (together, “Australian Standards”); and (ii) Livent’s cash & equivalents and available funds under revolving credit facilities position as of March 31, 2023, as set out in Livent’s Form 10-Q dated May 4, 2023 which was prepared in accordance with US GAAP (together, “US Standards”). As the merged group pro forma cash position has not been prepared in accordance with a consistent set of recognised accounting standards (either in accordance with the Australian Standards or the US Standards), this information is provided for illustrative purposes only and shareholders are accordingly cautioned not to place undue reliance on this information.

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SOURCE Livent Corporation