Stanmore Coal has received an acquisition proposal from Winfield Group Investments for an equity valuation of $390 million to $442 million.
The board of Stanmore Coal has engaged with Winfield Group subsidiary, Winfield Energy to finalise a process deed to facilitate due diligence on the agreement.
Indicative pricing for the proposal is within the range of $1.48 to $1.90 per share.
Winfield Energy is a privately owned company with a 12.5 per cent interest holding in the Rolleston mine in Queensland’s Bowen Basin.
There is no guarantee that the indicative proposal by Winfield will result in a formal and binding offer for Stanmore Coal.
The company has insisted that the proposal is not a notice of an intention to make an offer and that the company’s board will update shareholders in due course.
The board of Stanmore Coal has recommended that shareholders take no action in relation to the proposal at this time.
“The board has engaged with Winfield Energy with a view to entering into a process deed and ultimately, to facilitate a formal offer for the consideration of shareholders,” Stanmore Coal chairman Stewart Butel said.
The terms of the proposal involve Winfield Energy and its financiers undertaking and being satisfied with the results of further due diligence on Stanmore Coal.
It also includes Winfield Energy securing offers of financing and completing documentation with its financiers.
Winfield Energy has already conducted initial due diligence on Stanmore Coal based on the company’s ASX disclosures and is seeking a period to complete further due diligence.
Stanmore Coal said that the indicative pricing set out in the proposal may change pending Winfield Energy’s due diligence findings.