Bacanora (BCN) to delist from LSE: What’s next for retail investors?

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Bacanora (BCN) to delist from LSE: What’s next for retail investors?

 Bacanora (BCN) to delist from LSE: What’s next for retail investors?
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  • Bacanora Lithium plc is all set to delist from AIM on 26 January 2022.
  • Ganfeng International Trading (Shanghai) Ltd is acquiring Bacanora after receiving over 75% valid acceptance for its offer. 

There has been a flurry of delisting announcements on the London Stock Exchange (LSE) recently. The latest in the row is Bacanora Lithium plc (LON: BCN), a company focused on the development of the Sonora lithium project in Mexico. It has been announced that the company will be delisted from the Alternative Investment Market (AIM). The company got listed in March 2018.

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Why is Bacanora Lithium plc delisting?

In August 2021, Ganfeng International Trading (Shanghai) Limited had placed a cash offer worth £0.736 per share for Bacanora Lithium plc’s total issued as well as to be issued ordinary share capital, valuing the company at approximately £284.8 million. On 17 December 2021, Ganfeng announced the unconditionality of its offer recommendation after the satisfaction of the Mexican Antitrust Clearance Condition and all other conditions in the offer.

After receiving over 75% valid acceptance for its offer, Ganfeng notified its intention of procurement to the directors of Bacanora, and thus Bacanora Lithium plc made the announcement regarding the cancellation of its admission on AIM on 23 December 2021.

At 7:00 AM (GMT) on 26 January 2022, the cancellation is expected to become effective. Ganfeng has plans to get Bacanora registered again as a private limited company under the Companies Act.

What should the investors do now?

The management of the Bacanora has recommended shareholders accept the offer. The investors should keep in mind that if they don’t accept the offer at present, then the liquidity and marketability of their shares will fall substantially, along with the company’s reporting and disclosure requirements. It might become difficult for the remaining Bacanora shareholders to sell their shares later as they would turn into minority shareholders in the privately controlled company. Additionally, there is no guarantee of dividend payments or any other distributions, and the current offer might be the best opportunity for the minority shareholders to sell off their shares, as recommended by Bacanora directors.

British lithium miner Bacanora

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About Bacanora Lithium

Bacanora Lithium plc (LON: BCN) is dedicated to creating a 35,000 tonnes p.a. battery-grade lithium operation in Sonora, Mexico. Partnering with Ganfeng Lithium, its cornerstone investor, Bacanora strives to become a globally leading lithium production firm through this project.

The company focuses on transitioning to electric vehicles (EVs) and renewable sources of energy for a low carbon world and a better future for the wider community. With the rising demand for lithium to achieve net-zero goals, Bacanora aims to become a global market leader in the lithium market, EV market, as well as green energy market.

Bacanora’s present market cap stood at £257.38 million, and its shares were trading at GBX 67.25, up by 0.37%, at 9:42 AM (GMT) on 24 December 2021. It has given a return of 32.68% to its shareholders in the last one year.

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The British lithium miner has been performing quite well lately. According to Bacanora’s interim report released in September for the six months ended 30 June 2021, the total comprehensive income of the group stood at US$29.7 million, as compared to a loss of US$10.8 million in the same period last year. The £285 million Chinese takeover bid has been accepted; however, some UK politicians have shown resistance against the deal as it would further increase the dominance of China on the lithium market, as it already owns 90% of the rare earth mines.


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