PE-backed Whitehaven Coal receives $5.5b takeover bid

According to Tinkler Group, investors representing approximately 48.3% of the company's shares have expressed an interest in rolling their stakes into the bidding vehicle, subject to the completion of due diligence and required documentation. Investors representing a further 16.7% of shares may also be allowed to enter the bidding vehicle.

Tinkler already owns 21.6% and The Australian reported that First Reserve and Farallon, with 7.2% and 5.2%, respectively, have also thrown their weight behind the bid. A further 4.8% of the company is held by AMCI Capital, a joint venture between First Reserve and American Metals & Coal International.

Whitehaven's chairman and founder, Mark Vaile and Tony Haggarty, have yet to commit themselves, pledging to first seek the views of the remaining shareholders.

Tinkler Group has conditional letters of support from senior lenders UBS, J.P. Morgan and Barclays.

Whitehaven's independent board committee is being advised by Grant Samuel Corporate Finance and Corrs Chambers Westgarth.

According to analysts cited by Reuters, Tinkler's offer translates into an enterprise value per metric ton of coal of A$2.87, below recent deals such as Yanzhou Coal's acquisition of Gloucester Coal, which was priced at A$3.71 per metric ton. The likes of Yanzhou and Peabody have busied themselves buying up independent miners of late, capitalizing on a 20% fall in thermal coal prices since the start of the year.

Whitehaven rose by as much as 21% to A$4.18 during Monday trading, but have since fallen back to A$3.94. The company's share price has fallen more than 25% since the start of the year.

First Reserve and AMCI entered Whitehaven in 2007 as pre-IPO investors. The mining company put itself on the market in October 2010 and said in April 2011 that buyers had been shortlisted, but cancelled the auction a month later, apparently because the bids weren't suitably attractive. In July 2011, First Reserve and AMCI sold 65 million shares - equivalent to 13.15% - in Whitehaven for A$390 million.

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