Princeton-based specialty chemicals company Rockwood Holdings Inc. announced today it has entered into a joint venture with Chengdu Tianqi Industry Group giving Rockwood a 49 percent ownership interest and Tianqi a 51 percent interest in Talison Lithium Pty Ltd.
According to the announcement, it is expected that Rockwood and Tianqi will contribute equity of $196 million and $204 million, respectively. In addition, Rockwood will also provide to the joint venture a two-year secured loan of up to $670 million at 8 percent interest.
Proceeds to the joint venture will be used to pay off existing debt and equity holders including Tianqi Group HK Co., Limited and Leader Investment Corporation. Rockwood is expected to fund its investment in the joint venture from cash on hand. Lazard acted as Rockwood's financial advisor and Clifford Chance as legal advisor, the company said in a statement.