The company currently holds a 17.3% interest in Coalworks.
Whitehaven Coal managing director Tony Haggarty said the company’s offer provides a compelling value proposition for Coalworks shareholders compared to the option of continuing to hold an investment in the company.
"The acquisition of Coalworks represents a logical next step for Whitehaven which will allow Whitehaven to consolidate its development and exploration portfolio," added Tony.
"Our offer reflects an attractive premium relative to the recent trading prices of Coalworks shares, particularly given the Coalworks share price already reflects takeover speculation."
The deal gives Whitehaven interest in Coalworks’ Vickery South project in the Gunnedah basin, and Ferndale project in the Hunter Valley, which the company said were capital intensive with development requiring substantial commitment of resources and capital, to deliver coal to market.
Whitehaven said Coalworks’ assets can be developed more efficiently in combination with its own existing assets.
The company also expects the takeover offer will eliminate the time and risk associated with the development of Coalworks’ assets, as well as funding uncertainties, in exchange for a cash payment.
