(Reuters) -Australia’s richest person Gina Rinehart has doubled down on her holdings in Australia’s Arafura Rare Earths, even as shares of the developer fell by more than a fifth of its value on Wednesday due to a discounted share placement. Rinehart’s Hancock Prospecting has raised its stake in Arafura to nearly 15.7% with a commitment […]
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Australia’s richest person doubles stake on Australia’s Arafura Rare Earths
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(Reuters) -Australia’s richest person Gina Rinehart has doubled down on her holdings in Australia’s Arafura Rare Earths, even as shares of the developer fell by more than a fifth of its value on Wednesday due to a discounted share placement.
Rinehart’s Hancock Prospecting has raised its stake in Arafura to nearly 15.7% with a commitment of around A$125 million ($81.22 million).
It previously held a 7.19% stake in Arafura, according to data compiled by LSEG.
Arafura said it will raise around A$475 million via a two-tranche placement at an offer price of A$0.28 per share.
The placement price represents a more than 25% discount to its last close on Tuesday, sending shares 22.7% down to A$0.29 in its weakest trading session since June 2021.
The stock touched its lowest level since October 10.
In addition to the placement, the company is also undertaking a share purchase plan to raise about A$50 million at the same share price.
($1 = 1.5389 Australian dollars)
(Reporting by Sneha Kumar in Bengaluru; Editing by Alan Barona)