Rockwood added to Focus List at Credit Suisse Credit Suisse added Rockwood to is Focus List based on expectations the company will outperform its peers based on earnings upside. Shares are Outperform rated with a $65 price target, up from $60.
News For ROC From The Last 14 Days
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Rockwood to acquires 49% interest in Talison Lithium Rockwood Holdings announced that it entered into a joint venture with Chengdu Tianqi Industry Group giving Rockwood a 49% ownership interest and Tianqi a 51% interest in Talison Lithium Pty Ltd. This transaction is expected to close during the 1Q14, following receipt of regulatory approvals. At close, it is expected that Rockwood and Tianqi will contribute equity of $196M and $204M, respectively. In addition, Rockwood will also provide to the joint venture a two-year secured loan of up to $670 million at 8% interest. Rockwood will grant Tianqi a three-year call option to invest from 20%-30% in the equity of Rockwood Lithium GmbH, the European arm of Rockwood’s global lithium business, which will be valued at 14x the last twelve months Adjusted EBITDA. Proceeds to the joint venture will be used to pay off existing debt and equity holders including Tianqi Group HK and Leader Investment Corporation. Rockwood is expected to fund its investment in the joint venture from cash on hand.