Wealth Mining is still awaiting approval from two Chinese agencies for the proposed takeover of Carabella, chairman Andrew Amer said in the company’s target statement to shareholders.

On December 24, Carabella entered into a bid implementation agreement in which the Carabella directors agreed to accept the offer in relation to their own shareholdings, in the absence of a superior proposal.

“Your directors continue to believe that Carabella's portfolio includes a number of high-quality projects, in particular the Bluff and Grosvenor West projects [in Queensland] that have the potential to provide future value for Carabella shareholders,” Amer said.

“However, your directors have also taken into account that the revised offer of $0.45 per Carabella share represents a substantial premium of 128% to the closing price of Carabella's shares prior to the announcement of the offer, and an increase of approximately 8% over the initial offer of $0.42 per Carabella share.

“The offer provides Carabella shareholders with greater certainty relative to the alternative of waiting for the price of Carabella shares to reflect the potential value of its projects being developed and reaching full production, which has inherent risks.”

Carabella shareholders should also consider the risks associated with a continued investment in the company, Amer said.

“The interest from China Kingho reflects the efforts and achievements of the management and all at Carabella since its listing on ASX, in developing an attractive position in the Queensland coal industry during a particularly difficult period for smaller coal companies,” he said.

“The combination of the large Grosvenor West project with the smaller but substantially advanced Bluff PCI Project and Carabella's work in de-risking each of these projects has resulted in this large premium cash offer from China Kingho, a sizeable international resources company.”