Stanmore Coal says “take no action” on takeover bid
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The Stanmore Coal share price surged 21 per cent yesterday to near-all time highs after a takeover offer was tabled from its major shareholder Golden Investments.
Stanmore (ASX:SMR) had to walk back the size of the premium on the unsolicited offer however, six hours after confirming the bid: it’s worth an extra 6.5 per cent on the five day volume weighted average trading price (VWAP), not 14.5 per cent as they’d said earlier.
Golden Investments – part-owned by Indonesian company Golden Energy & Resources — priced its offer at 95c a share.
The stock closed at 98.5c on Monday, and opened flat the following day as investors wait to see what will happen next.
The Stanmore share price has increased almost 100 per cent over the past year.
Stanmore has told shareholders to take no action on the offer until it has evaluated the proposal properly and will provide a “recommendation in due course”.
Stockhead‘s Tim Treadgold covered Stanmore back in September, noting that “it’s becoming expensive to continue overlooking coal as an investment”.
The young coal miner told investors that its Isaac Plains coking coal mine in Queensland was performing “above expectations”and would contribute to “underlying” EBITDA earnings of $130 million to $150 million this year compared to $45.6 million last year.