Gina Rinehart lifts stake in takeover target Liontown

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

The numbers: Liontown on Tuesday confirmed Hancock had lifted its stake to 10.69% from 7.7% previously between 11 September and 25 September. Liontown shares closed at $3 each on Monday, the same price for which the Perth-based miner has received a revised takeover offer from Albermarle.

The context: Albermarle is in the midst of a four-week period of exclusive due diligence of Liontown, which is due to start production at its Kathleen Valley project in WA in mid-2024. In a separate statement late on Monday, the privately held Hancock said it maintains a long-term approach to its investments and offered Liontown help with the project execution and operational ramp-up risks. Hancock has previously said its shareholding is a strategic stake that will give it a say in the future of one of the world’s biggest lithium projects and indicated it may seek a seat on Liontown’s board in future.