Coalworks urges no action on Whitehaven offer

THE directors of New South Wales coal developer Coalworks have recommended that its shareholders take no action over the $172 million takeover offer by Whitehaven Coal.
Coalworks urges no action on Whitehaven offer Coalworks urges no action on Whitehaven offer Coalworks urges no action on Whitehaven offer Coalworks urges no action on Whitehaven offer Coalworks urges no action on Whitehaven offer

Coalworks' projects in NSW.

Lou Caruana

Whitehaven, which is a 17.3% shareholder of Coalworks, launched its surprise $1 per share bid yesterday after implementing a $5.1 billion merger with Aston and Boardwalk Resources.

“There have been no discussions held between Whitehaven and Coalworks on this proposal,” Coalworks said in a statement.

“Shareholders are advised to take no action in relation to Whitehaven’s unsolicited proposal. The directors of Coalworks will review the proposal and provide further advice in due course.”

Pitt Capital Partners and BBY have been appointed as advisors to Coalworks and Whittens Lawyers is acting as its legal advisor.

The offer allowed Coalworks shareholders to eliminate the risk associated with the development of its assets and funding uncertainties in exchange for an attractive cash payment now, Whitehaven managing director Tony Haggarty said.

“We believe our offer provides a compelling value proposition for Coalworks shareholders compared to the option of continuing to hold an investment in the company,” he said.

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