Australian firms in major coal merger

SYDNEY: Australian miners Aston Resources and Whitehaven Coal announced they will merge to form the nation’s largest listed independent coal company, worth A$5.10 billion.
Under the deal, valued at A$3 billion, Aston shareholders will receive 1.89 Whitehaven shares per Aston share, and majority owner Tinkler Group said it intended to vote in favour of the merger.
Billionaire mining magnate and Aston chairman Nathan Tinkler recommended shareholders approve the deal, which has the backing of both firms’ boards, describing it as an “important milestone”.
“The merger represents the next phase in Aston’s growth, providing shareholders with exposure to a larger and more diversified portfolio of coal mines, projects and exploration opportunities,” Tinkler said in a statement  released yesterday.
“I believe the merged entity will represent an extremely attractive investment of scale in the rapidly consolidating Australian listed coal sector and is positioned to deliver substantial synergy benefits to shareholders.”
Whitehaven put itself on the market in October last year but abandoned the sale bid in May, saying no “sufficiently attractive” offer had been made from interested Indian and Chinese parties including Yanzhou Coal.
Whitehaven chairman John Conde described the Aston merger as a “transformative and exciting transaction” that would capitalise on the positive long-term prospects for Australian coal exports.
“The merged entity becomes one of Australia’s leading independent coal producers with a high-quality portfolio of producing mines, major development projects and attractive exploration assets,” Conde said. – AFP
Whitehaven will pay a special A$0.50 dividend to its shareholders immediately prior to the merger’s implementation. – AFP