Banpu Public’s subsidiary Banpu Minerals has entered into a bid implementation deed to acquire all the shares of Hunnu Coal for an estimated value of A$477m (US$498m).
Thailand-based Banpu has made an all cash off-market takeover offer of A$1.80 (US$1.88) per share for Mangolia’s Hunnu Coal.
The deal will be subject to regulatory consents and approvals and is expected to be valued at A$375m (US$393m), reports Reuters.
Currently, Banpu holds about 12% of shares in Hunnu Coal and the Australian Financial Review newspaper said Banpu was expected to offer the usual 25-30% control premium on top of Hunnu’s existing market value.
Hunnu executive chairman Matthew Wood said, “Banpu’s Share Offer is at a significant premium to recent trading levels and relates to the strong prospects of Hunnu’s coking and thermal coal deposits. Furthermore, the cash nature of the offers will enable Hunnu shareholders and option holders to realise a premium value for their shares and options in a volatile and uncertain market.”