Photo by: Bloomberg
KALGOORLIE (miningweekly.com) – Coal miner Stanmore Coal has received an unsolicited non-binding and indicative takeover offer from privately-held coal miner Winfield Group Investments.
Winfield holds a 12.5% interest in the Rolleston coal mine, in Queensland, with its share of production currently amounting to about two-million tonnes a year of thermal coal.
Subject to the satisfaction of due diligence and Winfield securing finance, the off-market takeover bid would be made at a price of between A$1.50 and A$1.70 a share.
Stanmore on Wednesday said that the indicative pricing of the offer fell within a 2018 independent expert valuation, which had placed the company’s shares within a price range of between A$1.48 and A$1.90 a share, valuing the company at between A$390-million and $442-million.
The indicative proposal will be subject to a number of conditions, including a 50.1% minimum acceptance condition.
Stanmore shares were trading at about A$1.46 a share on Wednesday.