Liontown shares down 12% after Albemarle's overnight stock sale

The news: Shares in Gina Rinehart-backed lithium explorer Liontown Resources tanked in early trading after Albemarle sold its remaining shares in the company overnight.

The numbers: Liontown shares were down 12% to $1.20 at 11:00am (AEDT) on Thursday, after former suitor Albemarle sold its remaining 4% stake in the company, worth around $120 million. It comes three months after US-based Albemarle's failed $6.6 billion takeover of Liontown, which saw Gina Rinehart's Hancock Prospecting block the move after gaining a 19.9% stake in the lithium developer.

Context: US-based Albemarle, the world’s largest lithium producer, offered its 96 million Liontown shares in a block trade run by JPMorgan, ending any likelihood of a future takeover. Albemarle told investors that it wanted to "re-phase its organic growth investments and optimise its cost structure in response to changing end-market conditions, particularly in the lithium value chain".