Hancock Prospecting buys up another chunk of takeover target Liontown
Gina Rinehart’s Hancock Prospecting has teased more share purchases even as it moves to a dominant position on the register of takeover target Liontown Resources.
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Gina Rinehart’s Hancock Prospecting has moved to a dominant position on the Liontown Resources share register, now owning 16.7 per cent of the company, worth about $1.1bn.
The move could play havoc with Albemarle’s $3 a share, $6.6bn takeover bid for Liontown, with Hancock now understood to believe it has enough shares to block the necessary vote on the recommended takeover, should it decide to do so.
“Hancock is now Liontown’s largest shareholder,’’ Ms Rinehart’s company said in a statement released late on Friday.
“Hancock welcomes the opportunity to participate in the Kathleen Valley project as a shareholder, and have an influence on the company’s overall future direction – including where decisions are to be made by shareholders.
“Hancock does not currently intend to put forward any director nominations at Liontown’s upcoming annual general meeting.
“However, Hancock remains open to nominating directors to Liontown’s board in the future and particularly if its strategic stake continues to increase towards 19.9 per cent.’’
In its fifth raid on the Liontown share register since early last month, Hancock picked up another 2 per cent of the Liontown shares on issue, with one trade of almost 25 million shares changing hands late on Friday for $3 apiece.
Hancock’s end game in its play for the lithium producer has not yet been revealed, however it likely holds a comfortable blocking stake to Albermarle’s bid, which would need 75 per cent of votes cast by shareholders to get across the line.
Albemarle is in the final stages of due diligence for its bid, which has been recommended by the Liontown board.
The US battery chemicals company has not commented on Hancock’s share purchases to date.
The prize for the eventual victor in the takeover tussle is Liontown’s Kathleen Valley lithium project in Western Australia, which is currently under construction.
Liontown shares closed 3c higher at $2.99 on Friday.
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Originally published as Hancock Prospecting buys up another chunk of takeover target Liontown
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