(Reuters) – Lithium miner Liontown Resources on Thursday said it would extend the exclusive due diligence period by a week for its proposed A$6.6 billion ($4.23 billion) buyout by U.S. firm Albemarle Corp..
Liontown had earlier indicated that it has granted the U.S.- based chemical manufacturing company a four-week exclusive due diligence period to enable Albemarle to put forward a binding offer.
Albemarle’s due diligence is substantially complete and it requires a short extension, Liontown said.
Liontown had backed the buyout offer from Albemarle, the world’s largest lithium producer, which valued the company at about A$3 per share.
Hancock Prospecting, a firm controlled by local billionare Gina Rinehart, has now picked up a 19.9% stake in Liontown which might hamper the takeover attempts from the U.S. mining giant.
Albemarle needs 75% support from Liontown investors who vote on the deal to succeed with its bid.
($1 = 1.5591 Australian dollars)
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Maju Samuel)
