Gina Rinehart snaps up 7.7% stake in takeover target Liontown

The news: Gina Rinehart’s Hancock Prospecting has snapped up a significant stake in lithium producer Liontown Resources, which is being wooed by US battery chemicals giant Albemarle.

The numbers: Liontown on Tuesday confirmed Hancock had built up a 7.7% stake on its share register between 3 April and 11 September. Earlier this month, the Perth-based miner received a revised $3 per share takeover offer from Albemarle.

The context: Albemarle this week started a limited 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 on Monday, the privately held Hancock confirmed its shareholding was a strategic stake that would give it a say in the future of one of the world’s biggest lithium projects. Hancock said it may seek a seat on Liontown’s board in future but did not indicate any plans for a counter-bid.