Winfield Energy is pursuing the deal as it believes Stanmore Coal, its business interests, and assets to be complimentary to its own business interests
Stanmore Coal is the operator of the Isaac Plains coking coal mine in Queensland (Image credit: Stanmore Coal Limited)
Stanmore Coal announced that it has received a takeover bid in the range of A$390-442m (£216.21- 245.03m) from rival Australian coal company Winfield Energy, a subsidiary of Winfield Group Investments.
As per the unsolicited, non-binding, indicative proposal, Winfield Energy proposes to acquire 100% of Stanmore Coal at A$1.50-1.70 (£0.83-0.94) per share in cash.
Stanmore Coal said that its board has engaged with Winfield Energy to finalise a process deed to enable due diligence to be carried out by the latter and its debt and equity financiers. Based on the satisfactory completion of the due diligence, the parties are expected to negotiate a bid implementation agreement.
Stanmore Coal chairman Stewart Butel said: “The Board has engaged with Winfield Energy with a view to entering into a Process Deed and ultimately, to facilitate a formal offer for the consideration of Shareholders.”
Assets of Stanmore Coal
The company is the operator of the Isaac Plains coking coal mine in the Bowen Basin region in Queensland. Stanmore Coal owns 100% of the Isaac Plains Complex which includes the original Isaac Plains Mine, the nearby operational Isaac Plains East, Isaac Downs, an open cut mine project, and the Isaac Plains Underground Project.
Additionally, Stanmore Coal has various development assets that include coking and also thermal coal resources, located in Queensland Bowen and the Surat Basin.
Winfield Energy said that it is interested in Stanmore Coal, its business interests, and assets, because they are complimentary to its own existing business interests.
Assets of Winfield Energy
The Brisbane-based coal company holds a stake of 12.5% in the Rolleston mine in the southern Bowen Basin, about 275km from Gladstone. Currently, Winfield Energy’s share of production from the Rolleston coal mine is two million tonnes per year of thermal coal.
The stake in the Rolleston Mine was acquired by the company through the 100% acquisition of ICR Australia and ICRA Rolleston from ITOCHU in February 2019.
The company is partnered by Sumitomo (12.5%) and Glencore (75%) in the Rolleston coal mine, which produces nearly 16 million tonnes per annum of thermal coal for export and the domestic market.
Winfield Energy is also a financier of the Wiggins Island Export Coal Terminal (WICET) in Gladstone, which was developed in 2011 to have a capacity of 27 million tonnes per annum.