Hancock Prospecting shakes up lithium with Liontown stake
PUBLISHED
2023-09-12
Content
Liontown (ASX:LTR) shares are set to surge today following confirmation from Gina Rinehart's Hancock Prospecting that it has acquired a substantial stake in Liontown Resources, potentially disrupting the $6.6 billion cash offer from US lithium giant Albemarle.
On Monday, Liontown shares closed at $3.01, a slight dip from Friday's closing price of $3.04, which was already above Albemarle's indicative offer.
Last week, the shares had traded above the $3 mark as a mysterious buyer, now revealed as Hancock, steadily accumulated Liontown shares.
In a statement released by Hancock on Monday evening, the company verified its purchase of a 7.72% stake in Liontown. Liontown is the owner of the Kathleen Valley lithium project in Western Australia, and Hancock explicitly stated its intent to play a pivotal role in the company's future.
Hancock indicated that it is now strategically positioned within Liontown and may seek a board position, solidifying its influence in the company.
The statement was issued after the close of trading on Monday at 4 pm and confirmed the market's speculations about the buyer's identity.
Hancock had initially invested in Liontown, gradually increasing its stake from 4.0% to just under the 5% disclosure threshold.
Author
| Name | Glenn Dyer | Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey. |