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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] LG Energy Solution is set to sell its entire 7.5 percent stake in Australian lithium producer Liontown Resources, according to investment banking sources.
The sale will be conducted via an after-hours block trade, with Citigroup acting as the transaction’s bookrunner. The stake amounts to 239.5 million shares.
The shares are being offered at a price range of AUD 1.75 to 1.79 per share, valuing the transaction at approximately AUD 419 million (around KRW 430 billion).
LG Energy Solution acquired the stake by converting convertible bonds (CBs) it invested in Liontown in 2024. Market sources said the company judged this to be an opportune time to exit, as Liontown’s share price has risen by about 26 percent since the beginning of this year.
Despite the divestment, LG Energy Solution maintains its strategic lithium supply relationship with Liontown. When it invested in the CBs, the company also signed a long-term offtake agreement with Liontown in 2024 to secure a total of 1.75 million tons of lithium concentrate over 15 years—enough to produce batteries for roughly 5 million high-performance electric vehicles.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
