The White group holds the exclusive licence to a technology that converts sub-bituminous coals into briquettes. Amerod will acquire the companies that develop, manage and hold the exclusive licence to the technology.

The deal is worth around $A49.8 million and is made up of cash and shares. Amerod appointed Crosby Capital to help fund the acquisition. An initial $5 million was raised through a private placement to Crosby clients at 90c a share. Demand for the placement was significant, Amerod said yesterday, with the capital raising now closed.

Commercial development of the technology is well advanced with joint venture agreements being put into place with Datang International Power, Indonesian coal producer PT Bayan Resources and Japanese trading and investment company Itochu Corporation.

The Itochu agreement outlines using the briquetting process at plants in Indonesia with Itochu selling upgraded coal to Japan and other markets.