SAC is a former subsidiary of Felix Resources, which was not swallowed up by the Yanzhou Coal Mining’s takeover that was formally completed early this year.

Of the acceptances, White said 98% elected for the share alternative as opposed to the cash component of the offer.

Under the deal, White will issue 15.7 million of its ordinary shares to SAC shareholders.

When first announced in April, the offer valued SAC shares at almost A2c each based on a White share price of $2.50.

But White shares are trading around $3.02 today, improving their value by 21%.

While the takeover will broaden the scope of White outside of its main coal upgrading line of business, the deal will also hand over the reins of White to former Felix Resources executives Brian Flannery and Travers Duncan.

“We are pleased that our takeover offer of SAC is being met with such strong support,” White chairman John McGuigan said.

“This support shows that SAC shareholders recognise that combining White Energy’s unique coal upgrading technology with SAC’s coal resources is a very attractive value creating opportunity.

“Reuniting the former Felix Resources board and management in a company with expected cash reserves in excess of $200 million provides an outstanding platform for the future development of the company.

“We call on all SAC shareholders who have not yet taken up the offer to accept the offer and take part in this exciting opportunity.”

The takeover offer period closes on July 21.

If the takeover is successful, former Felix managing director Flannery will become the new chief executive of White, while former Felix chairman Duncan will become White’s new chairman.

Former Felix board members Hans Mende and John Kinghorn will also join White’s board in non-executive roles.

SAC’s Lake Phillipson coal deposit has 515 million tonnes of sub-bituminous coal resources while White’s patented process upgrades this type of coal into a higher energy, more stable and cleaner-burning coal briquette.

Coal from SAC’s resource in EL3386 could be transported to the Adelaide-Darwin rail line and exported through ports at Darwin, Adelaide and Whyalla.

White shares have lost 7c in trading so far today.