Insights

Galaxy (ASX:GXY) shareholders vote in favour of Orocobre (ASX:ORE) merger

This mega lithium merger took a major stop forward today…
The post Galaxy (ASX:GXY) shareholders vote in favour of Orocobre (ASX:ORE) merger appeared first on The Motley Fool Australia. –

The Galaxy Resources Limited (ASX: GXY) share price and the Orocobre Limited (ASX: ORE) share price will be ones to watch next week.

This follows the release of an update on their planned merger after the market close.

What was announced?

This afternoon Galaxy announced that the requisite majorities of its shareholders voted in favour of its proposed merger with Orocobre.

According to the release, 96.94% of Galaxy shareholders present voted in favour of the merger, with 98.69% of the votes cast in its favour.

What now?

With Galaxy’s shareholders voting in favour of the merger, its completion is close to being a formality.

The release explains that Galaxy will now seek approval of the scheme of arrangement by the Supreme Court of Western Australia. This will be at a hearing scheduled for 13 August 2021.

If the court approves the scheme at the hearing, Galaxy intends to lodge a copy of the orders with the Australian Securities and Investments Commission on 16 August 2021. At that point, the scheme will become effective.

If this occurs, Galaxy shares will be suspended from trading with effect from the close of trade on 16 August 2021. After which, implementation of the scheme is expected to occur on 25 August 2021, subject to the satisfaction or waiver of the remaining conditions precedent.

Finally, the new Orocobre shares will then commence trading on ASX on a normal settlement basis on 26 August.

Why merge?

Both companies expect the merger to create value for shareholders and leave the merged entity well-placed to benefit from increasing demand for lithium.

Back in April, Galaxy’s Chairman, Martin Rowley, commented: “This transaction has the potential to be a significant value-creating opportunity for Galaxy and Orocobre shareholders. The Scheme provides shareholders of Galaxy with the opportunity to share in the significant benefits of being part of a larger diversified group and the synergies expected to be available to help enhance and progress our portfolio of world class assets. The merged entity’s growth opportunities in both brine and hard rock position it uniquely to take advantage of expected rising EV demand for lithium.”

Investors certainly appear to agree. Since the announcement in April, the Galaxy share price is up 34% and the Orocobre share price is up 37%.

The post Galaxy (ASX:GXY) shareholders vote in favour of Orocobre (ASX:ORE) merger appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

Why ASX 200 lithium shares are charging higher on Friday

Pilbara Minerals (ASX:PLS) share price rallies 14% in just four days
Why the Vulcan (ASX:VUL) share price is running hot in August
Why the Galaxy Resources (ASX:GXY) share price hit a 52 week high
Why ASX lithium shares are beating the iron ore majors – again

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!