Billionaire Nathan Tinkler’s skills as a dealmaker are expected to be tested after he launched a takeover of Whitehaven Coal.
Whitehaven confirmed the approach from the 36-year-old, which it said involved a preliminary privatisation offer in which the company would be de-listed.
It’s believed Mr Tinkler would be negotiating in a consortium with Japan’s Idemitsu and other Japanese and Korean companies already active in NSW’s coal space.
He has earned a reputation for spectacular deals, such as buying the Maules Creek coking coal project in 2009 from a debt-laden Rio Tinto for about $480 million.
It was the flagship asset in Whitehaven’s sights when it bought Aston Resources and Tinkler’s Boardwalk Resources for $2.25 billion this year.
He currently has a 21.6 per cent stake in Whitehaven, which has a market capitalisation of more than $4 billion, putting it among the 60 largest companies on the ASX.
Whitehaven’s major shareholders, including funds such as ACMI and First Reserve were unlikely to allow Mr Tinkler to make another killing, said Morningstar equities analyst Gareth James.
“Nathan Tinkler’s deals in the past have seen him come out on top in a big way but I don’t know if that’s going to happen again in this case,” Mr James told AAP.
“ACMI and First Reserve are extremely sophisticated, knowledgeable, global investors in the resource space … I think they will drive a hard bargain.”
Much of the funding for a potential transaction would be expected to be driven by the Asian partners in the consortium.
Whitehaven said the proposal from Tinkler Group Pty Ltd (an entity controlled by Nathan Tinkler) was indicative, non-binding and “is not considered capable of being progressed at this time”.
The company had formed a committee of independent directors to consider any future developments if another, less conditional offer is lodged.
It is being advised by Grant Samuel Corporate Finance and Corrs Chambers Westgarth.
Whitehaven’s board put itself up for sale in late 2010 but had abandoned the process early the next year after being unable to attract the right price.
“The major shareholders walked away from the previous sale process, I think they know what this thing’s worth and it will be easier said than done for Nathan Tinkler,” Mr James said.
Whitehaven operates producing thermal coal mines in the Gunnedah Basin and at Narrabri in NSW.
The Maules Creek project will be a majority coking coal – used in steelmaking – with Whitehaven planning to increase production from six million tonnes to 25 million by 2016.
Mr Tinkler is Australia’s richest person under 40 years old.
Whitehaven Coal shares soared up on Wednesday, before retreating slightly to be up 16 cents, or 4.0 per cent, to $4.16 at 1600 AEST on Wednesday.
Whitehaven Coal picked up $370 million last week when it sold a 10 per cent stake in Maules Creek Japan’s biggest electricity company, Electrical Power Development.
