ASX Today, page-44252

Gina Rinehart’s position doesn’t necessarily have to be part of a takeover strategy. Does it?

Sure, Ms Rinehart has had low-ball takeovers executed on her behalf in the past but every situation is different and each company is different. Aside from blocking a foreign takeover and keeping Liontown in Australian hands perhaps Gina Rinehart—at some level—has a simple desire to be acknowledged as a contributor to the success of the energy transition in Australia and part of that is having a substantial chunk of the Liontown pie. It also reveals that she and her team believe they’ve backed a winner whilst at the same time protecting a quality Aussie asset, which has strong potential to be highly lucrative over decades to come. Her acquisition of Driza-Bone and Rossi boots support this theory, though they were acquisitions.

Also, Liontown managment are doing such a stellar job of futureproofing and safeguarding the company with layers of contingency and delivering goals on time against all odds there would be no sensible reasoning for replacing them and rocking the boat—if it ain’t broke, don’t fix it.

I wrote the following about Gina Rinehart weeks before the LG funding arrangement was announced: “The wealthiest person in the country. Best brokers, analysts and accountants in the country. Best lawyers in the country. A network of contacts around the globe and the ear of the Commonwealth Government. Surely whatever funding deals are secured they will only benefit Liontown going into production and provide LTR with the greatest chance of success in the future.”

Well that played out well!

Whether it was because Gina Rinehart was on team Liontown or not, we may never know. But it couldn’t have hurt.

Is it plausible that Gina Rinehart could simply remain a long term holder of Liontown Resources for the true blue Aussie story and the undeniable fundamental value? She doesn’t have to own and control everything. Maybe Gina Rinehart is not the megalomaniac many people presume her to be. If she is merely a savvy businesswoman with vast amounts of capital and an exceptional team of advisors can’t Liontown simply be part of a larger portfolio where she’s supporting the next “Big Australian” company and a world class managment team while she waits for all the extra cash to roll in?

Or Tim and Tony are talking her up to 3.70 from 3.50 as we speak…

I guess we will find out eventually.

These are just my thoughts.
Remember to do your own thinking.