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Guildford Coal receives unsolicited offer for Australian assets

Published: 09:30 18 Jul 2014 AEST

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Guildford Coal (ASX:GUF) has received an unsolicited offer for its Australian coal assets from Singapore for US$22.5 million or A$24 million.

The company's total market cap is circa $41.1 million.

Apart from its Australian assets, Guildford also operates the BNU North Coal mine and was formally commissioned for operations and sales by the Mongolian Government.

The offer was from a Singapore main board listed company. The Board of Guildford said it is considering and evaluating this offer.

Interestingly, the purchase price of $22.5 million would be payablein an unusual manner.

The offeror has proposed to pay by way of a non interest bearing convertible promissory note which would mature six months after issue and be payable in cash.

Or it or may be converted, at the purchaser’s option, into ordinary shares in the purchaser company to be issued to Guildford.

The offer is open for acceptance by Guildford until 5pm (Singapore time) on 23 July 2014.

It would be subject to obtaining necessary shareholder and SGX approvals, negotiation of binding documentation and other customary conditions.
 
This offer does not currently have any impact on the timetable for the non‐renounceable entitlement offer announced on 10 July 2014.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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