Hancock Prospecting moves to 19.9 per cent stake in Liontown Resources
The proposed $6.6bn takeover of Liontown Resources by Albemarle has almost certainly been stymied, with Gina Rinehart’s Hancock Prospecting moving to a 19.9 per cent stake.
Any future owner of Liontown Resources will have to pick up the phone to mining billionaire Gina Rinehart, with her company Hancock Prospecting moving to a 19.9 per cent ownership stake in the lithium miner on Wednesday.
US battery chemicals giant Albemarle is in the final stages of due diligence for its board-recommended takeover bid for Liontown, with the latter’s Kathleen Valley lithium project in Western Australia the jewel in the prize.
That takeover would require 75 per cent of votes cast at a shareholder meeting likely to be scheduled for early next year to go in favour of the takeover for it to succeed.
In practical terms this is extremely unlikely should Hancock not support the bid.
In several statements released as Hancock has crept up the Liontown share register, the company has expressed its opinion of the merits of working with other stakeholders to bring Kathleen Valley into production.
This suggests some sort of partnership arrangement, rather than a competing takeover bid, will be the likely outcome.
Hancock also said last week it would reserve the right to ask for a seat on the Liontown board.
“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,’’ it said on October 6.
“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.’’
Neither Liontown nor Albemarle has commented on Hancock’s share purchases since they started on September 11.
In a brief statement yesterday, Hancock said it had achieved its objective of building a “strategic stake’’ in Liontown.
“Hancock now looks forward to having a prominent influence on Liontown’s future, as its largest shareholder,’’ the company said.
Hancock built its share at or below the $3 per share which Albemarle is offering.
The stock dipped 2.7 per cent to $2.92 on Wednesday, which is its lowest level since early September, just after the revised Albemarle bid was made public.
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