Thai mining giant Banpu Public Company has this week made a takeover offer for ASX-listed Mongolian coal explorer Hunnu Coal. Banpu’s subsidiary Banpu Minerals intends to make cash offers for all of the shares in Hunnu Coal that it does not already own at Aus$1.80 per share.
Banpu says the offer represents a significant premium to Hunnu’s recent trading prices and values Hunnu’s fully diluted equity at Aus$477 million. Banpu currently owns about 12% of Hunnu shares.
In a statement, Banpu said that the Board of Directors of Hunnu had unanimously recommended that shareholders accept Banpu’s offer in the absence of a superior proposal. It said a takeover offer for all Hunnu options will also be made subject to obtaining regulatory modifications and consents.
Banpu’s CEO Chanin Vongkusolkit said: “Following the formation of our strategic partnership with Hunnu in March 2011, Banpu is pleased to make these offers for all the shares and options in Hunnu that we do not already own. We believe this transaction presents a unique and compelling opportunity for all stakeholders involved.
“Banpu’s share offer for Hunnu is at a significant premium to recent trading levels of Hunnu and has regard to the strong prospects of Hunnu’s coking and thermal coal deposits. Furthermore, we believe that the cash nature of the offers will enable Hunnu shareholders and option-holders to realize a premium value for their shares and options in a volatile and uncertain market.
“Banpu is strongly supportive of the Hunnu management team and its current strategy, and is excited to potentially increase its exposure to the Mongolian coal sector.”
Hunnu has more than 843 million tonnes of JORC reported coal resources across its Mongolian projects and has become one of the major explorers for coking and thermal coal in the world-class South Gobi and Middle Gobi coal provinces.
Banpu owns and operates coal mines and power generating assets across Asia and in Australia with a long track record of exceptional growth and operational performance.