Liontown Resources plummets after Albermarle drops bid
Albemarle on Monday withdrew its A$3-a-share offer, citing "growing complexities" after the Gina Rinehart-controlled Hancock Prospecting increased its Liontown stake to 19.9%.
Shares of Liontown Resources plunged by one-third on Friday after US-based miner Albemarle abandoned a A$6.6-billion buyout bid for the Australian lithium developer.
Albemarle on Monday withdrew its A$3-a-share offer, citing "growing complexities" after Hancock Prospecting, an iron ore miner controlled by Australia's richest person, Gina Rinehart, raised its Liontown stake to 19.9%.
Liontown shares sank more than 34% to a seven-month low of A$1.820 on Friday, their worst fall in nearly nine years, before recovering modestly. They had last traded at A$2.79 on October 13 before the Albermarle announcement, and had been halted since.
After Albermarle dropped its bid, Liontown said it would raise up to A$1.2-billion ($760-million) in debt and equity to fund its flagship Kathleen Valley lithium project.
"We are yet to know what Gina Rinehart's position has been on the capital raise and where the share price goes from here is what matters." said Henry Jennings, senior market analyst at Marcus Today.
Liontown said on Thursday it would raise A$760-million in debt from a banking syndicate and government credit agencies, and A$376-million in equity at A$1.80 a share, a 55% discount to the previous close. Chairman Timothy Goyder will contribute A$10.8-million, the company said.
The company last year secured a debt facility of A$300-million from a unit of Ford to further develop the Kathleen Valley project for the key battery mineral.
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