Behind Gina Rinehart's Liontown play
The West Australian billionaire created a stir when she emerged this week with a stake in already under offer lithium play Liontown. What is she really up to?
What exactly is Gina Rinehart up to? The West Australian billionaire created a stir in the market after disclosing a a 7.7% stake in Liontown Resources earlier this week, just days after US chemicals giant Albemarle lobbed a $6.6 billion bid for the ASX-listed lithium play.
Rinehart's private company Hancock Prospecting has not commented in detail on the move, beyond saying it now has a chance to support Liontown's “future direction” and potential investment opportunities, and that it might seek a position on the company's board.
Few in the market believe the stake is a precursor to a full bid for the company. "I'd be surprised if there was going to be a competing bid from Hancock," said Max Vickerson at Morgans Financial.
Instead, the move is likely designed to give Rinehart some influence over the future direction of Liontown, one of the hottest plays in the white hot lithium sector — which is booming due to its use in electric vehicle batteries and to which Australia's resources giants are underexposed. Hancock was approached for comment and referred Capital Brief to its public statement on the deal.
