A spokesman for Tinkler confirmed to ILN that late yesterday he had sold 10% of his shares in the New South Wales coal mining group to various parties after announcing that Farallon Capital Management had purchased the other 9.91% of the company for $2.96 per share.

Farallon also agreed to purchase an additional 1.63% from ASM Equities Fund making it Whitehaven’s new largest shareholder.

“Whitehaven has a strong existing relationship with Farallon and we welcome its further investment in our business,” Whitehaven Coal managing director Paul Flynn said.

“We look forward to continuing to deliver on our growth plans and to creating value for all of our shareholders.”

The sale draws an end to Tinkler’s ambition to grow his Aston Resources into Australia’s leading independent coal mining empire by acquiring all of Whitehaven’s shares.

It comes as the June 30 deadline for the $12 million he promised to Blackwood Corp as part of a placement deal settlement draws near.

Tinkler, who now resides in Singapore, has only one remaining link with the Australian coal industry – the $1 per tonne royalty he shares with his former business partner on coal produced by the Middlemount mine in Queensland.

Shares in Whitehaven rose by 9c to $2.40 yesterday as analysts predicted that the Tinkler sale removed a significant overhang on its share price.

In a statement yesterday the Tinkler Group said the sale of the Whitehaven shares did not reflect the inherent value of the company.

“While we are happy with the price we have received, being a 40 per cent premium to the current market price and a recent high for the company, we feel strongly that this still significantly undervalues the company's underlying asset base,” the statement read.

“Many will be aware of the emotional attachment that Mr Tinkler has to the assets of the company – specifically Maules Creek – and that selling this stake was a difficult decision.

“However we believe that no longer being a substantial shareholder of Whitehaven will benefit all existing shareholders.”

Whitehaven's asset base, consisting of low strip ratio, high yield and premium coal quality coal, provides for a strong future, according to the Tinkler Group statement.

“We wish the current shareholders well in extracting this potential value from the assets,” it said.