Singapore-based Golden Investments plans to seek a position on Australia-based Stanmore Coal’s board, despite its recent failure to takeover the coal producer for $171m (A$240.2m).
In November 2018, Golden Investments acquired a 19.9% interest in Stanmore Coal from Hong Kong’s Greatgroup Investments, thereby becoming the company’s largest shareholder. Later, it initiated a complete takeover bid, offering A$0.95 per share to Stanmore Coal.
The company now holds a 25.5% stake in the Australian firm at the close of the buy-out offer on 22 January.
Golden Investments, which is majority owned by Golden Energy and Resources, intended to acquire Stanmore due to its high-grade coking coal reserves and existing infrastructure.
However, its bid was lower than a BDO valuation, which estimated prices to be between A$1.48 and A$1.90 for each share
Following the increase in its stake, Golden Investments does not intend to make major changes to the Australian firm’s operations, according to the Straits Times.
Stanmore Coal operates the Isaac Plains complex, which generates coking coal and thermal coal.
The firm has many extension projects with higher grades of coal. It also has a portfolio of greenfield coking and thermal coal assets.
Golden Investments director Mark Zhou was quoted by Reuters as saying: “We look forward to meeting soon with the Chairman and Board of Stanmore Coal and will seek board representation.”
The firm has not begun negotiations as the takeover offer has just completed.
Zhou was quoted by Straitstimes.com as saying: “We will be in discussions on what the appropriate number would be.”
Golden Investments is 51% owned by Golden Energy and Resources, while the remaining 49% stake is owned by Ascend Global, a fund managed by Singapore-based Ascend Capital Advisers.
Golden Energy and Resources is majority owned by Indonesia’s Sinar Mas Group.