Speculation grows on Tinkler miner plans

24 Oct 2012, 6:18 pm   -   Source: AAP

There is speculation Nathan Tinkler is making another play for Whitehaven Coal as he threatens to try to roll its board.

Whitehaven Coal has refused to buckle to demands to give an early financial update to shareholder Nathan Tinkler, who is believed to be trying to make another takeover attempt.

The NSW coal miner released a statement on Wednesday saying that its quarterly activities report would be released by Friday as planned, despite Mr Tinkler demanding he exclusively get a copy on Thursday.

However Whitehaven also raised worries it might downgrade earnings forecasts by going into a trading halt, saying it was reviewing its market outlook with regard to coal market conditions.

Mr Tinkler wrote to Whitehaven chairman Mark Vaile on Tuesday demanding earnings results and guidance and an operational update by Thursday, a day ahead of the rest of the shareholders who own 80 per cent of the company.

If it was not provided he would use his 19.4 per cent stake to vote for the removal of Mr Vaile and four other directors, with whom relations have soured.

He would also ask for the removal of standstill agreements preventing him increasing his shareholding, which have been in place since his $5.3 billion takeover bid collapsed in August.

A spokesman for Mr Tinkler said he wanted the information early so he had enough time to consider it before next Thursday's annual general meeting.

Morningstar energy analyst Gareth James said he doubted that was the real reason and he saw it as a strategy ahead of bigger plans.

"Who knows if he's trying to put together another offer or something like that?" he told AAP.

"It kind of implies he's possibly a bit impatient to increase his shareholding in the company."

Mr Tinkler successfully took control of coking coal developer Aston Resources in a similarly aggressive fashion last November, removing the management team before it merged with Whitehaven.

Mr James said he thought Mr Tinkler was using the same approach to get a more hands-on role and possibly fast-track development of the company's Narrabri and Maules Creek thermal and coking coal projects.

However while he had founded Aston, Whitehaven was a different proposition and a profitable public company with respected shareholders and a strong leadership team, including chief executive and former Excel Coal founder Tony Haggarty.

"Tony Haggarty has done a great job with Whitehaven and someone like that isn't going to appreciate having someone with a minority shareholding threatening him," Mr James said.

"I could envisage that creating friction with directors ... it is a style of doing business but it is different from the Whitehaven style of doing business and I could imagine there being a huge collision."

He said the trading halt was confusing and he hoped there was no bad news on the way, with thermal and coking coal prices both weak and causing recent job losses in the sector in Australia.

That $5.1 billion deal helped Mr Tinkler become Australia's youngest billionaire.

However there is speculation he is currently in financial trouble amid a growing list of companies chasing unpaid payments from him.

Contractor Sedgman said on Wednesday it had settled with three of his companies, believed to involve a $2 million settlement.

  • Follow us: 
  • Follow us on Facebook
  • Follow us on Twitter
  • Follow us on Youtube