Gina Rinehart’s Hancock Prospecting has achieved its strategic stake objective of 19.9 per cent in Liontown Resources.
The announcement comes three days after Hancock became Liontown’s largest shareholder by holding 16.7 per cent on Liontown’s ordinary shares.
“Hancock Prospecting has achieved its strategic stake objective of 19.9 per cent of the ordinary shares in Liontown Resources (by) paying no more than $3.00 per share,” the company said in a statement yesterday.
“Hancock now looks forward to having a prominent influence on Liontown’s future, as its largest shareholder.”
Hancock achieved its goal on the eve of Albemarle’s four-week-long due diligence for its $6.6 billion takeover bid for Liontown.
The US miner has been gunning for Liontown since October 2022 when it first submitted an offer of $2.20 per share.
Liontown rejected that bid, but Albemarle submitted a second bid for $2.35 per share in March 2023, which Albemarle called a “compelling opportunity” for Liontown shareholders, although Liontown disagreed.
Albemarle remained undeterred as it submitted a third offer just weeks later, which equalled to $2.50 per share and valued Liontown at $5.2 billion. This offer was also knocked back.
Months later, Albemarle made a fourth offer of $3 per share that valued Liontown at $6.6 billion. Liontown seemed keen on this offer as it granted Albemarle opportunities to conduct a period of due diligence before it put forward a binding offer.
“Should Albemarle make a binding proposal at $3 per share, the Liontown board intends to unanimously recommend that Liontown shareholders vote in favour of the proposal,” Albemarle said in September.
However, with Hancock owning a substantial stake in Liontown, the Australian Financial Review’s (AFR) Street Talk has speculated that Albemarle is likely to ask for a due diligence extension as it navigates Hancock Prospecting’s substantial stake in Liontown.