Winfield Group Investments Pty. Ltd. lodged a nonbinding, off-market takeover offer to fully acquire Stanmore Coal Ltd. at between A$1.50 and A$1.70 per share, sending the target's shares up almost 16.5% by Australian trading close Aug. 7.
Stanmore said the indicative offer is within a previous independent expert valuation range of A$1.48 to A$1.90 per share and values the company at between A$390 million and A$442 million.
The company recommended that shareholders take no action on the proposal, and there is no guarantee that it will lead to a formal and binding offer for Stanmore.
Winfield Group is a private Australian coal company and counts former Peabody Energy Corp. executives as its owners, including Executive Chairman Rob Hammond, who is the former managing director and COO of unit Peabody Energy Australia. John Canavan is managing director of the prospective buyer and was director of M&A at Peabody Energy.
Winfield Group owns a 12.5% stake in the Rolleston thermal coal mine in Queensland, Australia, and its share of the mine's output is about 2 million tonnes per annum. It acquired the stake in February.
The transaction is conditional on a minimum acceptance of 50.1%.
Winfield Group will conduct due diligence on Stanmore and plans to negotiate a bid implementation agreement with the company, according to the release.
Stanmore rejected a A$225 million takeover offer in November 2018 from Golden Investments (Australia) Pte. Ltd., saying it "significantly undervalues" the company.