Coalworks to push Whitehaven bid
Fri June 15, 2012 3:55pm
COALWORKS will ask shareholders to accept an improved takeover offer of $146 million from Whitehaven Coal.
Whitehaven is also currently the target of a takeover offer from billionaire Nathan Tinkler, who already owns part of the company.
Whitehaven has agreed to an amendment that will take its $142 million takeover offer for Coalworks up to $145.6 million.
Whitehaven has also removed all conditions on its offer.
"The board of Coalworks will recommend to shareholders the offer by the bidder should be accepted by shareholders of the company,'' Coalworks said.
"The board believes the higher value achieved and the removal of all conditions by the bidder represents sufficient value and certainty for Coalworks shareholders to accept the offer.''
Coalworks shareholders are due to meet today to vote on a move by Macquarie Bank to remove the miner's chairman Wayne Mitchell and chief executive Andrew Firek.
Macquarie's concerns centre around a $17.4 million capital raising in April that resulted in Asian commodities trader Noble Group becoming a nine per cent Coalworks shareholder and its strategic adviser without any tendering.
Macquarie also criticised the company for tripling executive remuneration to $3.1 million last year.
Coalworks' three major assets include coking and thermal coal projects, Ferndale in the Hunter Valley, Vickery South in the Gunnedah Basin and Oakland North in NSW's south.