Embattled entrepreneur Nathan Tinkler has denied being forced by his lender into the $600 million sale that has ended his involvement with Whitehaven Coal.
His long-time financier, Farallon Funds announced on Wednesday it had paid $300 million at $2.96 a share for 9.9 per cent of Mr Tinkler’s 19 per cent-plus stake in Whitehaven.
It later emerged that Mr Tinkler would dump the lot on Wednesday, thus losing his most valuable asset, which was worth more than $1 billion a little over a year ago.
He would not personally comment, but spokesman Tim Allerton insisted the stake was not seized and the decision to sell and the timing of it was Mr Tinkler’s.
However analysts disagree and a large document released by Farallon’s lawyers says that Wednesday’s sale was “triggered” and that Mr Tinkler’s companies had agreed to sell 90 per cent of their shares to repay various lenders.
Farallon is now Whitehaven’s largest shareholder with a 16.6 per cent stake.
The move was cheered by investors who believed the presence of Mr Tinkler and his debt problems were hurting perceptions about the company’s ownership.
Its shares jumped nine cents, or 4.3 per cent, to $2.20.
The sale marks the end of a chapter in the 37-year-old former billionaire’s business career that began with the $5 billion merger between his own coal company, Aston Resources, and Whitehaven 18 months ago.
The story has gone bad with the end of the coal boom leading to Mr Tinkler being unable to repay massive debts to creditors believed to be as high as $700 million, employees left unpaid and the liquidation of companies and fire sale of assets.
A $12 million deadline to pay ASX listed Blackwood Corp is in 11 days, following a legal dispute over a $28.4 million debt.
A Tinkler Group statement said that while he was happy with the price received, being a 40 per cent premium to the current share price, it still significantly undervalued the company’s underlying asset base.
“Many will be aware of the emotional attachment that Mr Tinkler has to the assets of the company, specifically Maules Creek, and that selling this stake was a difficult decision,” the statement said.
While Whitehaven is struggling to make any money in the current weak coal environment, its coal mines are highly regarded and it is set to become a major player.
Mr Allerton said Mr Tinkler would pursue his overseas business interests, which include a Singapore company Bentley Resources.
Patersons analyst Andrew Harrington said he thought the worries about Mr Tinkler’s presence on the share register were overblown as it didn’t affect Whitehaven’s operations.
“Nevertheless people thought it held water and that dark cloud is no longer there,” he told AAP.
“It will be interesting to see what his wealth looks like whenever he is totalled up by BRW or whoever else does it.”
