Liontown Raising $400m equity; touts $760m debt
UBS finally began crossing fund managers for lithium play Liontown Resources’ emergency capital raising on Wednesday evening, seeking $400 million from equity capital markers.Talks began at $2.20 to $2.60 a share, which would be significant premium to the $1.52 a share that Liontown was trading at back in March before its disclosed Albemarle’s bids. The indicative offer price is a discount of 26.7 per cent to 13.3 per cent discount to Albemarle’s now-dead $3 a share bid.
Sources said Liontown chairman Tim Goyder would tip in $10 million, but Gina Rinehart’s commitment wasn’t clear. Prospective investors were being told Liontown had found backers for $760 million in debt funding, with government agency Export Finance Australia being thrown around as one of the lenders.
Put it together and that’s $1.16 billion of funding that Liontown Resources is chasing after being left on the altar by Albemarle, a suitor it spurned for nearly a year before giving it a look at its books in September. Just last month, it indicated to shareholders $450 million in debt was all it needed in the immediate future.Naturally, some real-money funds think the $2.20 to $2.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
UBS starts sounding for Liontown’s equity raisingSources said Liontown was looking at a minimum deal size around the $300 million ballpark.
Read more »
MA Moelis taps new resources sector headThe firm has lured Treadstone Resource Partners executive director Adam Bill as its new resource sector coverage lead.
Read more »
Albemarle abandons $6.6 billion takeover bidThe $6.6 billion takeover of lithium producer Liontown by US giant Albermarle today collapsed after the intervention of Australia's wealthiest person, Gina Rinehart. Rinehart's Hancock Prospecting spent more than $1 billion to buy close to 20 per cent of Liontown, meaning it can determine the fate of any takeover bid.
Read more »
Delayed environment laws spark calls for urgent government action on water and frackingMinister Tanya Plibersek should strengthen ‘trigger’ protection to ensure projects are assessed for impact on water resources
Read more »
Is Exxon’s $93b deal a threat to the world’s carbon emission targets?ExxonMobil is buying Pioneer Natural Resources, a major US shale oil and gas producer. Will that add to global emissions or could it, perhaps, even lower them?
Read more »
Is Exxon’s $93b deal a threat to the world’s carbon emission targets?ExxonMobil is buying Pioneer Natural Resources, a major US shale oil and gas producer. Will that add to global emissions or could it, perhaps, even lower them?
Read more »