Altura appoints Citigroup for possible takeover

Altura Mining has appointed Citigroup as its corporate adviser in relation to a potential takeover of the $740 million company by its largest shareholder, Chinese battery manufacturer Shaanxi J & R Optimum Energy.

Altura announced last month that it was in discussions with Shaanxi, which has a 19 per cent stake in the company, about the possibility of a control transaction.

The Chinese group also has a number of offtake deals with Altura’s Pilgangoora lithium project in the Pilbara, which is on the brink of production.

Altura said it has also engaged Allion Partners to manage the legal process of any potential transaction.

“Citigroup will assist the company in considering potential interest which may emerge from J&R Optimum Energy and other local and international parties,” the company said in a statement to the ASX.

“Altura reiterates that at this stage there is no certainty that any transaction will proceed, and if so, on what terms.

“In accordance with its continuous disclosure obligations, Altura will keep the market updated with any developments as necessary.”

Altura's board and management own 18 per cent of the company, led by non-executive director Allan Buckler, who holds 10 per cent.

Max Smith also has a 10 per cent stake in Altura.

Altura is set to enter the commissioning phase at Pilgangoora this quarter, with mining and processing to commence at a rate of 1.5 million tonnes per annum of ore. 

Shares in Altura finished up 0.5 per cent at 40.7 cents each.