Gina Rinehart's Hancock Prospecting has increased its strategic stake in Liontown Resources to 10.69%, posing a potential obstacle to battery chemical giant Albemarle Corporation's $6.6 billion takeover bid.
Hancock’s acquisition of an additional 44.1 million shares at $3 each matches Albemarle's bid price, which Liontown has already accepted and is currently under due diligence.
Hancock Prospecting's latest Liontown share purchase follows its disclosure on September 11 of a 7.72% stake in Liontown.
While the current stake is not substantial enough to block Albemarle's bid, which requires approval from 75% of Liontown shareholders, Hancock has previously shown its willingness to engage in drawn-out takeover battles.
The company had triumphed over Strike Energy in acquiring Western Australian gas producer Warrego Energy.
The move comes as Hancock offered a harsh assessment of Liontown’s ability to hit targets and successfully operate the Kathleen Valley project, which could be Australia’s first underground lithium mine.
Hancock issued a statement highlighting its expertise in project delivery, suggesting instead that it would be a suitable custodian for Liontown's assets, especially the Kathleen Valley lithium project — Hancock already owns lithium assets near the Kathleen Valley site.
Lithium prices have continued to fall since Hancock first became a Liontown shareholder. Spodumene concentrate prices have fallen by around 60% over the past nine months. Yet Hancock says it maintains a long-term approach to its investments and commodity markets.