Gina Rinehart lifts stake in Liontown Resources to nearly 15%

The news: Gina Rinehart’s Hancock Prospecting has increased its stake further in lithium explorer Liontown Resources, which is being wooed by US battery chemicals giant Albemarle.

The numbers: Liontown confirmed late on Tuesday that Hancock had lifted its stake to 14.67% from 12.36% previously, after buying more shares on 2 October and 3 October. Liontown shares closed at $2.95 on Tuesday, slightly below the Albemarle offer price of $3 a share.

The context: The latest increase brings Rinehart a step closer to being able to block Albemarle's bid for Liontown. Although Hancock has not said it plans to make a counter-bid, it has shown keenness to have a say in developing the target company’s Kathleen Valley project in WA, which is due to start production in mid-2024 and is one of the world’s biggest lithium projects. The privately held Hancock has previously called its shareholding ‘strategic’ and indicated it may seek a seat on Liontown’s board in future.