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PERTH (miningweekly.com) – Suitor Golden Investments has told the shareholders of ASX-listed Stanmore Coal that it will not be increasing its offer price of 95c a share, and that it will not extend its offer date past January 22.
Stanmore in December urged shareholders to reject the offer, saying the price was “materially inadequate” and did not provide an appropriate control premium.
At the time, the coal miner told shareholders that independent expert BDO Corporate Finance had estimated the controlling interest value of Stanmore shares to be between A$1.48 and A$1.90 a share, and had concluded that the offer was neither fair, nor reasonable.
However, Golden Investment has appointed Grant Thornton as its own independent reviewer of the offer, and told Stanmore shareholders that it identified ‘material issues’ with the BDO assessment.
Grant Thornton had assessed Stanmore’s shares to be valued at between A$0.84 and A$1.10 a share.
Golden Investment further pointed out that no alternative offer had arisen since the initial offer was launched in November last year.
The suitor told Stanmore shareholders that its offer represented a certain full liquidity opportunity, with the offer also being declared unconditional.
Stanmore operates the Isaac Plains mine, in Queensland, which consists of the original Isaac Plains mine, the operational Isaac Plains East deposit, the Isaac Downs openpit operation and the Isaac Plains underground operation, which is currently being assessed in a bankable feasibility study.
The miner has projected an earnings before interest, taxes, depreciation and amortisation of between A$130-million and A$150-million for the 2019 financial year, up from the A$45.6-million reported in the 2018 financial year, with coal production expected to reach two-million tonnes over the same period.