By: Esmarie Swanepoel
15th June 2012
PERTH (miningweekly.com) – ASX-listed junior Coalworks on Friday said that it would recommend the takeover offer by fellow-listed Whitehaven Coal, after the bid was sweetened.
In addition to declaring the offer unconditional, Whitehaven has also agreed to distribute Coalworks’ 33% shareholding in Orpheus Energy to shareholders, post the merger, adding another 2.5c to the A$1 a share offer price.
Coalworks said that after discussions with its shareholders, the revised terms have now been deemed acceptable. The company added that senior management and shareholders, which collectively hold a 15% interest in the company, had already indicated their intent to accept the offer.
“There are now even more compelling reasons for Coalworks shareholders to accept the Whitehaven offer,” said Whitehaven MD Tony Haggarty on Friday.
“The offer price represents a substantial takeover premium and highly attractive value for Coalworks shares, and Coalworks’ share price is likely to decline substantially in the absence of the offer.”
It was reported that Coalworks’ acceptance of the revised offer has also prompted 7.4% shareholder Macquarie Bank to drop its call for the disposal of non-executive chairperson Wayne Mitchell and CEO Andrew Firek.
The shareholders meeting to vote on the ousting was scheduled for Friday.
Whitehaven’s offer for Coalworks would close on June 26, and the company has said that the offer price was final.
Whitehaven itself is the target of a takeover by fellow-listed Tinkler Group, with owner Nathan Tinkler trying to line up at least $2.5-billion in debt to fund the proposed takeover.
Tinkler currently holds a 21.4% stake in Whitehaven.
Edited by: Mariaan Webb
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