West Australian lithium player Liontown Resources has opened the door to a $6.6 billion takeover by one of the world’s largest lithium producers, Albemarle, in what is shaping up as a big payday for the company’s investors.

Liontown on Monday told the market that it had received a sweetened $3-a-share proposal from the New York-listed chemicals giant Albemarle, with the minnow’s board ready to open its books to the suitor.

“Should Albemarle make a binding proposal at $3.00 per share, subject to agreement of a mutually acceptable
binding scheme implementation agreement, the intention of the Liontown board is to unanimously
recommend shareholders vote in favour of the proposal in the absence of a superior proposal and subject to
an independent expert concluding (and continuing to conclude) that the proposed transaction is in the best
interests of shareholders,” the board said in a statement.

Albemarle, which already holds a 2.2 per cent stake in Liontown through its subsidiary RT Lithium, had its original $2.50-a-share offer rejected in March.

The latest bid, Albemarle’s third in five months, is at a 15 per cent premium to Liontown’s closing share price on Friday. Its previous non-binding proposals were made on March 3 this year, at $2.35 a share, and on October 20 last year at $2.20 a share.

The takeover target’s shares soared on news of the revised offer, jumping more than 9 per cent to $2.86 in afternoon trading.

If successful, the deal would deliver a stunning return for Liontown’s faithful early shareholders. The miner listed on the ASX in 2018 at 3¢.

Liontown’s register is dominated by its chairman, Tim Goyder, who owns a 15 per cent stake in the miner. Another 20 per cent is reportedly in the hands of investors closely aligned to Goyder and the miner’s long-term vision.