Indonesian miner bids for Stanmore Coal
Stanmore Coal is the target of a $240 million takeover offer from a subsidiary of Indonesia’s Golden Energy and Resources.
Golden Investments, 51 per cent owned by Golden Energy and Resources, is bidding 95 cents for each Stanmore share, a 14.5 per cent premium on the target’s five-day weighted average price prior to receiving the offer.
The bidder believes the offer is “attractive” and provides Stanmore shareholders with “immediate value”.
Stanmore, however, has recommended its shareholders take no action in response to the bid.
The coal company’s share price moved positively following the offer, finishing yesterday’s trading higher than the Golden Investments bid at 98.5 cents.
Ascend Global Investment Fund holds the remaining 49 per cent of Golden Investments.
Stanmore owns the Isaac Plains coal operation in the Bowen Basin, Queensland, a site it acquired from Vale for $1 in 2015. It is also ramping up operations at the adjacent Isaac Plains East mine.
The company also reported yesterday that the Isaac Plains Complex was performing above expectations following improved run-of-mine (ROM) recoveries at Isaac Plains East and production of a higher proportion of semi-soft coking coal compared with its original plan.
It expects to produce 2 million tonnes of product this financial year, with an 88:12 split between semi-soft coking coal and thermal coal.
Golding Contractors last week announced it had been awarded a five-year, $500 million contract extensionby Stanmore for mining services at Isaac Plains East.