Regal Funds Management (Regal Funds), an Australian hedge fund with AUD6bn ($3.8bn) in AUM, is looking into shares of potential takeover targets in the domestic lithium sector, according to a report by Bloomberg.
According to the report, Regal Funds is betting that mergers and acquisitions spree that’s swept up the lithium mining industry in Australia will boost valuations. The report noted that a decline in valuations for some lithium producers is making them prime targets for investors trying to find entry points into the clean energy transition and EV supply chain trade.
Regal holds shares of Lithium Power International Ltd., which last week agreed to be acquired by Chilean copper miner Codelco, as well as Pilbara Minerals Ltd. The fund also holds Azure Minerals Ltd., another company that has climbed amid the flurry of lithium M&A activity.
The stock, which is currently suspended as talks of a potential deal continue, have skyrocketed 980% year to date.
