China’s Tianqi Lithium inches nearer to Australian stake sale close

Lithium mine. Photo: Reuters

China’s Tianqi Lithium said on Monday it would close the sale of a stake in its Australian operations by June 30 after winning conditional approval on restructuring from Canberra and agreeing to split a possible tax bill with buyer IGO Ltd.

Heavily indebted Tianqi, one of the world’s top producers of lithium chemicals used in electric-vehicle batteries, is pocketing a much-needed $1.4 billion from the sale, agreed in December, of 25% in the Greenbushes mine and 49% in the Kwinana processing plant in Western Australia.

The company said in a filing on Monday it had on June 9 received a so-called no objection notification from Australia’s Foreign Investment Review Board on the internal transfer of Kwinana to Tianqi Lithium Energy Australia (TLEA), provided this complies with tax regulations.

Given the Australian Taxation Office may need a long time to decide whether the transfer is exempt from capital gains tax, however, Tianqi and Perth-based IGO – which is taking 49% in TLEA – have signed a tax-sharing agreement that will allow them to complete their transaction by June 30, Tianqi said.

Under the agreement, IGO will shoulder 49% of any tax bill up to a stipulated maximum amount, Tianqi said, without giving a value.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.