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Notice
Allkem Limited (ASX code: AKE) have released the scheme booklet for the proposed Scheme of Arrangement with NYSE listed Livent Corporation (NYSE: LTHM) to create a new holding company Arcadium Lithium plc (NewCo).
The scheme is still subject to shareholders and court approvals.
If this scheme is approved, AKE shareholders will receive 1 NewCo CDI for each AKE share held on the scheme record date. AKE will subsequently be delisted from the ASX.
The indicative timetable (from the ETO’s perspective) is:
AKE Scheme Meeting |
Tuesday, 19 December 2023 |
|---|---|
Court Hearing to approve the Scheme (Second Court Date) |
Wednesday, 20 December 2023 |
Scheme Effective Date |
Thursday, 21 December 2023 |
Last day of trading in AKE shares - |
Thursday, 21 December 2023 |
Scheme Record Date |
Wednesday, 27 December 2023 |
Scheme of Arrangement Termination Implications for AKE ETOs
According to the terms of the scheme, AKE shares will cease trading after the scheme becomes effective. ASX has consulted ASXCL and has determined to terminate all AKE ETOs contracts by cash settlement at the intrinsic value with the AKE reference price to be ASX closing price for AKE on Thursday, 21 December 2023.
Option positions held at the close of business on Thursday, 21 December 2023 will be closed out and cash settled at the intrinsic value. Takers will be credited and writers debited. The intrinsic value method is equivalent to the expiry of the options effectively brought forward to the last day of trading of the underlying security. ASXCL will settle these cash amounts on the next business day – Friday, 22 December 2023.
Exercise Restriction
An exercise restriction will be placed on AKE ETOs on AKE shares last day of trading on the ASX - Thursday, 21 December 2023.
Listing Restriction
To mitigate the number of termination in AKE ETO contracts, a listing restriction on AKE ETOs will apply on Thursday, 14 December 2023.
No further AKE series will be listed from Thursday, 14 December 2023.
What do I need to do by when?
Participants to be aware of the adjustment method ASX AKE ETOs contracts for the proposed Scheme of Arrangement.
Effective Date
A further ASX Notice will be released after the closing of trading on Thursday, 21 December 2023 outlining the termination prices for AKE ETOs.
Need more information?
Issued by
Greg Fitzpatrick, Senior Manager, Clearing Operations
Contact information
William Ward
clearing@asx.com.au