US groups consider Whitehaven Coal buyout

According to local reports, the companies are looking to gain the support of American Metals & Coal International Inc. (AMCI) to take ASX-listed Whitehaven private and sell it in parts to Alpha. AMCI group owns an approximate 15% stake in Whitehaven and is the company's second-largest shareholder following First Reserve, which has a 27% stake.

Whitehaven, which is a leading producer of high-quality thermal and coking coal, reported a 32% boost in coal sales year-on-year to December 2009, translating to a 35% increase in net profit after tax to A$83.5 million ($76.7 million). According to reports, a boost in production at its Narrabri mining facilities may have added to its appeal as an acquisition target. In August of last year, Whitehaven sold a 7.5% interest stake in the Narrabri Project for A$125 million ($114.8 million) to Korean consortium Daewoo International Corporation and Korea Resources Corporation.

 

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• Topics
• Buyouts
• Australasia