Preferred bidder: Whitehaven likely winner of BHP coal sale
Whitehaven has been named as the preferred bidder for BHP’s joint venture mines, Daunia and Blackwater, in central Queensland.
Coal is likely to shape debate in the upcoming election (File image)
No price has been revealed but analysts have said the Blackwater mine was worth about $US2.5 billion and Daunia about $US800 million.
The mines are owned by the BMA joint venture between BHP and Mitsubishi. The sale marks further retreat from the coal sector for BHP. It sold the South Walker Creek and Poitrel coal mines last year.
The sale, if it goes through, won’t be universally welcomed by Whitehaven’s investors because it would also mean the suspension of the company’s share buyback and minority shareholder Bell Rock has raised concerns about that.
Bell Rock has called for a shareholder vote on the deal claiming it would destroy shareholder value.
Whitehaven shares have been suspended, but the preferred bidder status was confirmed by BHP in its operational update this morning.
