In what will be one of the most newsworthy mergers this year, Whitehaven Coal and Aston Resources have announced that they are going through with a $5.1 billion merger. Aston Resources is owned by billionaire Nathan Tinkler.
The two companies have been discussing the merger since last week. On Monday the shareholders of Aston were told that they would get 1.89 Whitehaven Coal shares per share of Aston Resources. The members of the board had unanimously recommended the merger to the shareholders.
Australia's youngest billionaire, Mr Tinker said that he believed the merged entity would represent an extremely attractive investment of scale in the rapidly consolidating Australian listed coal sector and was positioned to deliver substantial synergy benefits to shareholders.
Whitehaven chairman John Conde said that this asset base, combined with the positive long term outlook for Australian export coal, places the merged entity in an excellent position to generate ongoing value for all shareholders.
In addition Whitehaven Coal may also buy Boardwalk Resources, which is also owned by Nathan Tinkler. Boardwalk Resources investors, including the Tinkler Group which owns 32%, will receive 85.88 million Whitehaven shares for the deal.