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Tianqi Lithium, the Chinese firm that owns a 22% stake in Sociedad Quimica y Minera de Chile (NYSE:SQM), said Monday it may consider action to protect its interests in a deal signed by SQM and Chilean state miner Codelco that would create a joint venture for production in the lithium-rich Atacama salt flat.
Tianqi described negative aspects of the deal statement, including dividend dilution and SQM (SQM) losing control after 2030 when its current license runs out, also noting the risk of losing the asset altogether if the transaction with Codelco fails.
“We will not hesitate to resort to all necessary legal bodies to guarantee the full recognition and respect” of minority shareholder rights, Tianqi wrote in a filing with regulators.
The deal between SQM (SQM) and Codelco was hammered out in months of complex talks, during which Tianqi repeatedly urged a shareholder vote to ensure transparency and full participation.
Goldman Sachs warned investors to focus on whether Tianqi would seek legal action to block the deal.