COVID-19 has been quoted as one reason behind today’s takeover bid on Stanmore Coal.
The bidder, Golden Investments, is offering $1 a share for 50 million shares. That’s a 22 percent premium to yesterday’s closing price.
Golden Investments already controls 31.25 percent of the 250 million plus shares listed with the Australian Stock Exchange (ASX) making it the largest shareholder in Stanmore Coal.
Stanmore Coal’s share price has been steadily declining since July 2019 as its operational and financial performance and position continues to deteriorate, Golden Investments said in a statement to the ASX.
This share price fall has accelerated recently as a result of the impact of the coronavirus pandemic on local and global economies, it said.
“The extent of the effect of the coronavirus pandemic on internal trade, consumption, production and the movement of people is currently unquantifiable.”
“The Offer Price represents an attractive 22.0 percent premium to the closing price of $0.82 per Stanmore Coal share on the ASX on the last trading day before this announcement and a 27.3 percent premium to the 30-day volume weighted average price of Stanmore Coal shares to 1 April 2020.
“Golden Investments has appointed its broker, Petra Capital, to purchase Stanmore Coal shares at the Offer Price from today in reliance on item 2 of section 611 of the Corporations Act. Stanmore Coal shareholders may sell some or all of their Stanmore Coal shares at the Offer Price immediately on-market and be paid cash two trading days after acceptance of the offer has been made.”
“Petra Capital will stand in the market on behalf of Golden Investments and accept up to 50,316,100 Stanmore Coal shares offered to it at the Offer Price from the date and time of this announcement.
“However, the Offer will officially be made during the period commencing 17 April 2020 and ending at the close of trading (4.00pm Sydney time) on 18 May 2020, unless extended or withdrawn in accordance with the Corporations Act.”
Golden Investments is owned by Singapore’s Golden Energy and Resources (GEAR) and Ascend Global.