European Lithium (EUR AU): Critical Metals (CRML US) Firms Reverse Takeover

• European Lithium (EUR AU)‘s ~34.4% held Critical Metals (CRML US) has announced a non-binding reverse takeover via a Scheme scrip deal.

• CRML intends to issue 0.035 new CRML shares for each EUR share. The implied value per CRML scrip is A$0.58/share. EUR shareholders will hold ~45% of the combined entity.

• A completed merger sees 100% of Tanbreez Rare Earth project under one roof. Exclusive due diligence to run until around the 7th May. EUR is up 53% as I type.

The Trade:

• Clean, if not unorthodox, deal.

• If small, somewhat illiquid arbs are your bag, I might simply go outright long in EUR, to capture the holding company discount into CRML.