The Brazilian private equity fund proposed to the historic shareholder Julio Ponce an offer of US$ 916 million to buy a portion of the holding, but the Chilean businessman has no interest in selling the stake he holds in the cascading companies.

The proposal by Brazilian private equity fund IG4 to buy a portion of the holding from Julio Ponce, a historic shareholder of Chilean lithium producer SQM, for US$ 916 million was rejected. According to sources close to SQM, consulted by Diario Financiero, the offer was rejected because Ponce has no interest in selling the stake he holds in the cascading companies through which he invests in the miner. Information published by Reuters indicated that the non-binding offer had been delivered last Monday in Santiago to Ponce, through his financial advisor K2 Advisors, after nearly a year of discussions. Read also: Brazilian fund IG4 Capital offers more than US$ 900M for a stake in Chilean SQM The sources explained to DF that this is not the first offer the businessman has received recently. Asian, British, and Arab funds have also shown interest in the investment. One of the main objectives of the transaction proposed by IG4 is to simplify the ownership structure of SQM, reducing the discount on the share price and facilitating the company's access to capital markets. Following the proposal, the shares of the "cascade" companies rose on the Santiago Stock Exchange. Pampa Calichera society gained 4.99%, Oro Blanco 7.88%, and 7.02% at midday. Lithium producer SQM has a market capitalization of US$ 14.3 billion. It trades at a significant discount compared to rivals such as Australia's Orocobre, China's Ganfeng Lithium, and industry leader Albermarle. Ponce, 75, former son-in-law of dictator Augusto Pinochet, bought a stake in SQM during its privatization in the 1980s and has maintained power in the company since then. He remains a controversial figure in Chile and although the company no longer has a formal shareholder agreement, a result of an agreement reached with the Chilean development agency Corfo, Ponce still appoints board members.