Australia’s Richest Woman Acquires Stake in Liontown Resources
Introduction
Australia’s richest woman, Gina Rinehart, has acquired a stake in lithium producer Liontown Resources Ltd., which is being targeted for a A$6.6 billion takeover by Albemarle Corp. Rinehart’s company, Hancock Prospecting Pty Ltd., has confirmed the acquisition and expressed interest in securing a board seat.
Rinehart’s Stake and Plans
- Hancock Prospecting Pty Ltd. has acquired a 7.72% stake in Liontown Resources.
- The company believes it can contribute to Liontown’s metal conversion and growth.
- Hancock offers expertise and support for the development and operations of Liontown’s projects.
- It suggests potential investment opportunities for downstream value add in West Australia.
- Rinehart’s company wants to influence Liontown’s future direction alongside other shareholders.
Liontown’s Promising Lithium Project
Liontown Resources owns an early-stage lithium project in Australia with significant potential.
- The project is a high-quality hard-rock lithium deposit in the development phase.
- Liontown has secured supply agreements with major automakers like Tesla Inc. and Ford Motor Co.
- Hancock Prospecting sees the project’s potential to operate at scale, despite some risks.
Albemarle’s Takeover Plans
Albemarle Corp., the world’s largest producer of lithium, has made a cash offer for Liontown Resources.
- The offer price of A$3 per share has been trading intermittently above the offer price.
- Albemarle has been granted due diligence after increasing its offer by 20%.
Conclusion
Gina Rinehart’s acquisition of a stake in Liontown Resources and her expressed interest in a board seat may disrupt Albemarle’s takeover plans. Liontown’s promising lithium project and supply agreements with major automakers make it a valuable asset. The situation continues to evolve as Albemarle conducts due diligence.
Sources
- Bloomberg: https://www.bloomberg.com
- Bloomberg Businessweek: https://www.bloomberg.com/businessweek
