By Stuart Condie
SYDNEY–Albemarle secured an extra week to look over the books of takeover target Liontown Resources after a company controlled by Australia’s richest woman took what may be a blocking stake in the lithium miner.
Australia’s Liontown on Thursday said it extended Albemarle’s exclusive due diligence period by seven days at the U.S. miner’s request. On Sept. 11, the ASX-listed company granted Albemarle four weeks to look over its books following a fresh takeover proposal valuing it at more than US$4 billion.
“While Albemarle’s due diligence is substantially complete, it requires a short extension of the four-week exclusive due diligence period,” Liontown said in a market filing.
It did not refer to Hancock Prospecting’s statement issued late Wednesday that the Australian miner had taken a 19.9% strategic stake in Liontown.
Billionaire Gina Rinehart’s Hancock said reaching a 19.9% equity stake had been its strategic objective.
“Hancock now looks forward to having a prominent influence on Liontown’s future, as its largest shareholder,” Hancock said on Wednesday.
Albemarle last month made a revised proposal for Liontown, which is developing one of the largest and highest-grade hard rock lithium deposits in the world. Albemarle said its proposal of 3.0 Australian dollars (US$1.92) in cash per share was its best and final offer after several earlier approaches were rejected as too low.
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