Aussie billionaire Rinehart takes stake in SQM target Azure Minerals (updated)

Azure Minerals

27/10/2023 07:48

(Adds details and background in paragraphs 2-6)
       Oct 27 (Reuters) - Australian billionaire Gina
Rinehart-controlled Hancock Prospecting has taken an 18% stake
in Azure Minerals  AZS.AX , it said on Friday, potentially
hindering Chile's SQM  SQMA.SN  to take full control of the
lithium developer.
    SQM, the world's second-biggest lithium chemicals maker,
already has a 19.99% equity stake in Azure and, on Thursday,
offered to buy the remaining shares for $900 million.
    One of the conditions of SQM's offer was that it would walk
if any one shareholder took a stake of 19% or more in Azure.
    Hancock Prospecting's statement did not mention when it had
acquired the shares in Azure.
    Hancock, Azure and SQM did not immediately respond to
Reuters' request for comment.
    Rinehart had used a similar tactic to make Hancock the top
shareholder in lithium miner Liontown Resources  LTR.AX  and
scupper U.S. mining giant Albemarle's  ALB.N  A$6.6 billion
($4.19 billion) buyout offer.
    SQM first bought its stake in Azure for A$20 million in
March and had previously offered to buy out the company in an
A$901.4 million deal that the lithium company rejected.
 
 ($1 = 1.5765 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru; Editing by Savio
D'Souza)
 ((Rishav.Chatterjee@thomsonreuters.com;))