Rinehart boosts Liontown stake as spending spree nears $1.2 billion

afr.com:

Gina Rinehart has reinforced her potential blocking stake in takeover target Liontown Resources, as $6.6 billion suitor Albemarle weighs up its next move after reaching the end of a four-week due diligence period.

Mrs Rinehart’s Hancock Prospecting said on Tuesday that its stake in Liontown stood at 18.4 per cent after forking out another $110 million on the lithium stock over the past two days.

Gina Rinehart has again bolstered her stake in the lithium prospector. 

The Rinehart spending spree on Liontown stock since April now totals almost $1.2 billion with most of its shares acquired at $3, which matches Albemarle’s indicative all-cash takeover offer.

Liontown and New York-listed Albemarle have not updated the market since the designated due diligence period ended.

There is a possibility Albemarle may seek to extend due diligence on a takeover deal that now hinges on Mrs Rinehart’s support.

Hancock said last week that it intended to build its stake to 19.9 per cent, the cusp for launching a rival takeover offer.

The private company controlled by Australia’s richest person said it wanted to provide mining firepower to Liontown’s flagship Kathleen Valley lithium project and indicated an interest in lithium processing, which is Albemarle’s area of expertise.

“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 said in its most recent statement on Liontown.

If Albemarle proceeds with its offer, the scheme of arrangement is likely to require support from 75 per cent of votes cast by shareholders.

Based on Hancock an 18.4 per cent stake, it could