Australian Pacific Coal (AQC) is rocketing up the ASX ranks as a fifth suitor enters the race for the company and its Dartbrook coal mine in New South Wales.
The company has received another conditional non-binding indicative takeover proposal, this time from a proposed joint venture (JV) between Tetra Resources and Javelin Private Capital Group.
Tetra would own 40 per cent of Dartbrook, with Australian Pacific Coal owning the remaining 60 per cent.
There would be a debt moratorium and funding agreement between AQC and Trepang Services, a consideration which Tetra and Javelin believe already has the support of Trepang.
The proposal also involves a marketing agreement and a $US65 ($96.17) per-pay loan agreement between Javelin and AQC Dartbrook JV participants (which is 40 per cent Tetra, 60 per cent AQC).
Australian Pacific Coal notes the proposal from the bidding parties represents a joint venture proposal and not a control transaction.
The proposal is subject to three conditions:
- A successful debt placement by Javelin Private Capital
- The bidding parties finalising the legal and financial structure subject to tax advice
- Execution of binding transaction documents
Tetra advised AQC that it is a privately owned Australian company with the intent of developing and managing coal projects, while Javelin advised it is a world leader in coal and expects to manage more than 50 million tonnes in 2022.
Australian Pacific Coal has already attracted a takeover bid from its largest shareholder, Trepang Services, the Matt Latimore-backed M Resources, and two separate bids from former AQC managing director Nathan Tinkler, via entities, Nakevo and Pacific Premium Coal.
A Trepang spokesperson told Australian Resources & Investment the JV proposal from Tetra and Javelin was “superior to the other proposals”, with it promising “the highest value and the most accretive outcome for AQC shareholders and for the development of the Dartbrook project”.
AQC was trading at $0.56 at 3:50pm AEST on September 15, which is up 330 per cent from a month ago. The company has a market capitalisation of $193 million.