Stanmore Coal has received an off-market takeover offer from Golden Investments (Australia), a joint venture company owned by Golden Energy and Resources (GEAR) and Ascend Global Investment Fund.
Under the terms of the offer, Golden Investments intends to acquire up to 100% of Stanmore Coal in return for $0.95 in cash per share.
The bid values Stanmore at around A$240m ($175.78m) and offers the company a premium of a 14.5% over the company’s 5-day Volume Weighted Average Price.
In view of the offer, Stanmore asked its shareholders not to take any action at this stage. The company stated that its board will evaluate the offer before responding.
In a stock exchange announcement, Golden Energy and Resources revealed that it has signed an agreement to purchase 50,108,395 fully paid ordinary shares from Greatgroup Investments for a consideration of around A$47m ($34.3m).
The acquisition of the shares will give the company around 19.9% of the total issued share capital of Stanmore Coal.
GEAR acquired a 51% interest in Golden Investments last week for the purpose of making the offer. Ascend Global owns the remaining 49% stake in the company.
Stanmore Coal Group is engaged in exploration, development and production of metallurgical and thermal coal, with interests in the several Queensland-based projects, including Isaac Plains, Isaac Plains East Open Cut, Isaac Downs, Isaac South, Clifford, The Range, Mackenzie, Belview, and Lilyvale.
Through the proposed transaction, GEAR intends to bolster its overall asset portfolio by diversifying and expanding its coal product suite and geographical presence.