Coalworks says it has support for WHC deal

15 Jun 2012, 4:09 pm   -   Source: AAP

Coalworks chairman says shareholders will support Whitehaven takeover deal as Macquarie Bank dumps plan to remove Coalworks chairman and CEO

Coalworks chairman Wayne Mitchell says shareholders will overwhelmingly support a deal to accept a takeover offer from Whitehaven Coal.

Mr Mitchell said the NSW miner struck a deal with Whitehaven after it amended its offer to take the value of the bid from $142 million to $145.6 million.

"I believe it will receive big support from our shareholder base," Mr Mitchell told AAP.

He said Whitehaven had most probably spoken to Macquarie about cancelling its demands to oust chief executive Andrew Firek and himself.

On Friday Mr Mitchell told a shareholder meeting in Sydney that Macquarie had withdrawn the resolutions after the Coalworks board announced earlier on Friday it would recommend to shareholders an improved takeover bid from Whitehaven Coal.

He later said the Coalworks directors were now making a recommendation to support the new deal with Whitehaven while the company remained in caretaker mode for the next few weeks.

"This is about Whitehaven acquiring for synergies they see they will get with the assets of Coalworks."

Mr Mitchell said Whitehaven's intention was to privatise Coalworks.

Whitehaven, which itself is the target of a takeover offer from its major shareholder billionaire Nathan Tinkler, also removed all conditions from its offer.

"The board believes the higher value achieved and the removal of all conditions by the bidder represents sufficient value and certainty for Coalworks shareholders to accept the offer," Coalworks said on Friday.

Macquarie's move was motivated by concerns around a $17.4 million capital raising in April that resulted in Asian commodities trader Noble Group becoming a nine per cent Coalworks shareholder and its strategic adviser without any tendering.

Macquarie also criticised the company for tripling executive remuneration to $3.1 million last year.

Coalworks' three major assets include coking and thermal coal projects, Ferndale in the Hunter Valley, Vickery South in the Gunnedah Basin and Oakland North in NSW's south.

Mr Mitchell intends to focus on running Orpheus Energy which has recently began coal production in Indonesia.

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