Banpu to launch A$477m bid for coal developer Hunnu
PERTH (miningweekly.com) − Asian coal and energy provider Banpu has announced its intention to make a A$1.80 a share cash offer for all the shares it does not already own in ASX-listed Hunnu Coal.
Banpu already owns a 12% stake in Hunnu, which develops coal projects in Mongolia, and said that the offer valued the company at A$477-million.
The offer is a 30% premium to Hunnu’s last closing price of A$1.38 a share, before trading was suspended on Thursday. It was also a 53% premium to the company’s one-month volume weighted average price of A$1.18 a share.
Banpu said its offer took into account the strong prospects of Hunnu’s coking and thermal coal deposits.
“We also believe that the cash nature of the offer will enable Hunnu shareholders and optionholders to realise a premium value for their shares and options in a volatile and uncertain market,” it added.
All Hunnu directors planned to accept Banpu’s share offer and recommended that shareholders do the same, in the absence of a superior proposal.
The directors also recommended that if Banpu made an offer, Hunnu optionholders should accept the option offer.
The takeover offer would be conditional upon a minimum 90% acceptance condition, as well as obtaining the required regulatory approvals.
Banpu’s bidder’s statement would be dispatched to Hunnu shareholders late this month or in early October.
Hunnu has a total Joint Ore Reserves Committee compliant resource of around 766-million tons across all its Mongolian projects, with an initial estimate currently being calculated for the Altai Nuurs hard coking coal project, which has an exploration target of between 250-million and 500-million tons.
A resource upgrade was also currently being completed for the Tsant Uul project, which currently hosts a Jorc resource of 90-million tons.
Edited by: Mariaan Webb
Banpu already owns a 12% stake in Hunnu, which develops coal projects in Mongolia, and said that the offer valued the company at A$477-million.
The offer is a 30% premium to Hunnu’s last closing price of A$1.38 a share, before trading was suspended on Thursday. It was also a 53% premium to the company’s one-month volume weighted average price of A$1.18 a share.
Banpu said its offer took into account the strong prospects of Hunnu’s coking and thermal coal deposits.
“We also believe that the cash nature of the offer will enable Hunnu shareholders and optionholders to realise a premium value for their shares and options in a volatile and uncertain market,” it added.
All Hunnu directors planned to accept Banpu’s share offer and recommended that shareholders do the same, in the absence of a superior proposal.
The directors also recommended that if Banpu made an offer, Hunnu optionholders should accept the option offer.
The takeover offer would be conditional upon a minimum 90% acceptance condition, as well as obtaining the required regulatory approvals.
Banpu’s bidder’s statement would be dispatched to Hunnu shareholders late this month or in early October.
Hunnu has a total Joint Ore Reserves Committee compliant resource of around 766-million tons across all its Mongolian projects, with an initial estimate currently being calculated for the Altai Nuurs hard coking coal project, which has an exploration target of between 250-million and 500-million tons.
A resource upgrade was also currently being completed for the Tsant Uul project, which currently hosts a Jorc resource of 90-million tons.
Edited by: Mariaan Webb
Comments
Post a Comment