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All Cash Offer for Hunnu Coal by Thailand's Banpu

By Joel ScanlonSep 12 2011

The coal mining company Banpu Pcl from Thailand is to bid for the Australian-based coal explorer Hunnu Coal. Hunnu Coal is focused on Mongolia and had called for a trading halt on its shares last Friday saying that a potentially significant corporate transaction was due on or before Tuesday.

The top Thailand based mining firm Banpu owns 12.4% of Hunnu Coal and would consider it beneficial to take over the company as it is eyeing the mining license it has for the Tsant Uul Coal Project in Mongolia. Hunnu Coal also has a stake in Altai Nuurs and Unst Khudag projects in Mongolia.

The two companies have been conducting negotiations over the weekend and as per inside sources there is a good indication of them reaching a mutually agreeable deal. The deal could be very similar to the $2.5 billion bid that Banpu had made for Centennial Coal in mid 2010. In that case too Banpu had executed the same strategy of beginning with a minority stake and ending up buying the company.

Hunnu shares last traded at Australian $1.725, up from a Australian $0.20 issue price just 19 months ago. The deal should probably be announced by Tuesday.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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Scanlon, Joel. (2019, March 19). All Cash Offer for Hunnu Coal by Thailand's Banpu. AZoMining. Retrieved on May 11, 2024 from https://www.azomining.com/News.aspx?newsID=4917.
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