Liontown Resources’ top shareholder Gina Rinehart ups stake again through Hancock Prospecting

Mining billionaire Gina Rinehart has continued to increase her stake in takeover target Liontown Resources via Hancock Prospecting.

In a filing to the Australian Securities Exchange after market close on Tuesday, Hancock said it had lifted its stake in Liontown from 16.7 per cent to 18.4 per cent.

Hancock acquired approximately 36.7 million shares between October 9 and 10 at $3 per share, which was also Liontown’s share price at the close of trade.

Mrs Rinehart is creeping closer to the 19.9 per cent maximum threshold before she will be required to launch a formal takeover offer after earlier this month surpassing fellow mining billionaire Tim Goyder, who holds a 15 per cent stake, to become Liontown’s biggest shareholder.

Hancock has more than doubled its holding since September 11, when it revealed it had become a substantial shareholder with 7.72 per cent.

Mrs Rinehart’s emergence at top of Liontown’s share register significantly enhances the chances of it spoiling a $3-a-share takeover bid for Liontown by US battery chemicals giant Albemarle.

Hancock is yet to publicly comment on its latest acquisition but has previously expressed its desire for a Liontown board seat and suggested it would continue to increase its holding towards 19.9 per cent.

“Hancock welcomes the opportunity to participate in the Kathleen Valley project as a shareholder, and have an influence on the company’s overall future direction — including where decisions are to be made by shareholders,” it said.

“Hancock remains open to nominating directors to Liontown’s board in the future and particularly if its strategic stake continues to increase towards 19.9 per cent.”

The miner has also repeatedly cast doubt on Liontown’s ability to deliver Kathleen Valley, located about 680km north-east of Perth, warning the project faces “significant execution, operational ramp-up and market risks”.

Albemarle’s $6.6 billion takeover offer via a scheme of arrangement requires 75 per cent support to be approved.

Liontown told the ASX on September 11 that due diligence would “commence shortly” on the Albemarle offer and take approximately four weeks to complete.

Hancock’s growing blocking stake has likely thrown a spanner into the due diligence discussions.

Neither Albemarle nor Liontown have provided an update on due diligence discussions.