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Qld coal mine bought for $1 is now the centrepiece of $256 million takeover

Business

Stanmore Coal, the company that made millions from a central Queensland mine it bought for $1,  appears to be moving into foreign hands for $256 million.

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Long-time stalker Golden Investments, which already had 31 per cent of Stanmore, made a second takeover offer for the company earlier this week at $1 a share and was behind a big trade in Stanmore shares yesterday to lift its stake to 51 per cent, effective control of the company.

Stanmore’s board has told shareholders to take no action and will provide a recommendation in due course but shares in Stanmore jumped to 99 cents yesterday from 78 cents on Tuesday.

In its bidder statement, Golden said Stanmore Coal’s share price had been steadily declining since July 2019 as its operational and financial performance and position deteriorated.

“This share price fall has accelerated recently as a result of the impact of the coronavirus pandemic on local and global economies.

“This offer represents a compelling opportunity for you to realise immediate, certain and attractive value for your Stanmore Coal shares in the face of an uncertain future.

“The offer price represents an attractive 22 per cent premium to the closing price of 82 cents Stanmore Coal shares on the ASX on the last trading day before this announcement and a 27.3 per cent premium to the 30-day volume weighted average price of Stanmore Coal shares to 1 April 2020.

Golden Investments has appointed Petra Capital as its broker.

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