Stanmore Coal’s board has urged shareholders to accept an offer from Singapore-based Golden Investments to buy-out the company.
Last month, Golden Investments, a majority shareholder in Stanmore, announced an on-market offer of $1 per Stanmore share that it did not already own or control in a bid to take over the Queensland-based company.
As at last Thursday, Golden Investments had a 60.25 per cent share in Stanmore Coal.
The target’s key Queensland asset is the Isaac Plains coking coal mine in the Bowen Basin region.
The company owns the Isaac Plains complex, including the original mine, adjoining Isaac Plains East operational, Isaac Downs open cut and Isaac Plains underground projects.
Stanmore also holds a number of promising development assets in both thermal and coking coal across the Bowen and Surat basins.
Stanmore’s independent directors are advised that shareholders accept Golden Investment’s offer, which Stanmore said will not be extended after the May 18 close date.
The independent directors have advised shareholders to sell their shares as soon as possible, noting that the offer price will not be increased.
Stanmore Coal’s three independent directors and chief financial officer and secretary are set to resign from the company as Golden Investments progresses with Stanmore takeover.
The three directors, Stewart Butel, Stephen Bizzell and Neal O’Connor have all handed their resignation notices, to be effective at the close of Golden Investments’ offer period or upon appointment of new directors.
Chief financial officer and secretary Ian Poole has also resigned and is working out his notice period with the company.