Kangaroo Resources shares jump as news leaks of takeover talks
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Junior coal miner Kangaroo Resources has been forced to reveal it is the target of a potential takeover by its biggest shareholder after shares shot up late last week.
The ASX grilled the company (ASX:KRL) over why its share price jumped 57 per cent to an intra-day high of 4.4c on Friday.
The shares have doubled since last month.
Kangaroo told the ASX it had received a request from its largest shareholder, PT Bayan Resources Tbk, for the two to enter into a confidentiality agreement.
Bayan Resources already owns 56 per cent of Kangaroo.
Kangaroo believes Bayan Resources could be paving the way to acquire the rest of the company.
In March, Bayan Resources seconded one of its senior executives, Alexander Wibowo, to Kangaroo as its managing director.
The Perth-based company has interests in 14 coal concessions in Indonesia and one exploration lease in Queensland.
Kangaroo had about $1.4 million in the kitty and $38.3 million in debt at the end of the March quarter, but was forecasting a spend of $1.8 million in the current quarter.
Shares climbed even further this morning, reaching a new 52-week high of 4.6c before edging back to 4.3c at 11.30am AEST.
Kangaroo was unable to comment on the matter.