2024-05-13 12:01:27
Frank Ha requested that the pact between SQM and Codelco be voted on by shareholders in an extraordinary meeting, and warned that he will not hesitate to take legal action if the agreement is signed without respecting all the regulations that bind each of the parties.
After the last extraordinary meeting of SQM shareholders, held on April 24 at the request of Tianqi Lithium, its CEO, Frank Ha, a shareholder in SQM and at the same time a direct competitor of the mining company, once again referred to the Memorandum of Understanding (MoU). ) agreed with Codelco, insisting that it be voted on at an extraordinary shareholders meeting.
Given this, the president of the board of directors of SQM, Gonzalo Guerrero, declared that “the potential alliance after being analyzed and debated “It was unanimously approved by the Company’s board of directors, where three of its directors were nominated by Tianqi.”
He added that “the structure that was presented to the Financial Market Commission, CMF, and reported to the shareholders meeting regarding an eventual agreement with Codelco, “It was not designed to avoid approval by the shareholders’ meeting.”
SQM stated that the structure of the aforementioned alliance has been explained in a timely and detailed manner to the board of directors and its shareholders in two shareholder meetings.
“The purpose of the corporate structure considered is to ensure the continuous and uninterrupted operation of the Company’s operations in the Salar de Atacama, which is in line with the social interest and the interest of an eventual public-private partnership, since it corresponds to the one that allows a better implementation of the aforementioned association with Codelco in the Salar de Atacama,” Guerrero emphasized.
He added that The board of directors of SQM, unanimously of its members, decided… not to put to a vote what was requested by said shareholderreporting at that meeting and in detail, the reasons why in its opinion it was not appropriate to approve a transaction that is in the process of negotiation and that under the structure agreed with Codelco it is not appropriate to be approved by a shareholders meeting.
At the same time, he specified that “all of the above in accordance with the law and what was resolved by the CMF. Shareholder meetings are only called upon to hear those matters that are their responsibility by law or the statutes of a company. In this case, neither the law nor the Company’s bylaws require the approval of the transaction by SQM shareholders.”
In the Tianqi Lithium statement, shared by La Segunda, Frank Ha stated that “we will not hesitate to take legal action.” To which the president of the board of directors of SQM responded that “it is reasonable to estimate that the above is only consistent with actions deliberately designed by a competitor.” that looks after their interest to the detriment of the Company and its other shareholders.”
Thus, Guerrero defined Ha’s demand as “a illegal privilege which could harm the Company, which could lose the possibility of continuing its operations in the Salar de Atacama” and which in turn “puts at risk the formation of the public-private alliance to continue SQM’s operations in the Salar de Atacama.” , which is an integral part of the National Lithium Strategy of the Government of Chile”.
Finally, Guerrero said that “it is essential that SQM shareholders act with the greatest prudence in their actions and statements. Trying to put pressure in this way in the context of a business as relevant as a potential association with Codelco, damages the Society.”
“All shareholders have the same rights, but also the same duties, including respecting the rights of the Company and other shareholders. This is even more true with respect to those shareholders who have relevant participations and are at the same time competitors of the Company,” he concluded.