NEW HOPE BIDS FOR NEC

Written on the 11 October 2010

NEW HOPE BIDS FOR NEC

NEW Hope Corporation Limited (NHC) has announced a $192.6 million takeover bid for coal miner Northern Energy Corporation Limited (NEC).

The $1.50 per share all-cash off-market offer is 42.9 per cent higher than NEC’s closing price of $1.05 on October 6, before a speculative surge and trading halt yesterday at $1.115 per share.

New Hope chairman Robert Milner, says the proposition will allow greater access to capital for NEC, which is well-needed given the company’s project plans.

“Northern Energy is a coal exploration company and requires significant amounts of additional capital to develop its project pipeline. New Hope has a strong balance sheet and the capacity to develop NEC’s projects from existing cash reserves,” he says.

“For New Hope, the proposed acquisition of NEC enables New Hope to gain further exposure to the metallurgical coal market as well as providing an additional thermal coal development pipeline.

“Our offer also provides certainty of value in what has been a volatile period for NEC shareholders.”

Northern Energy chief operating officer Mark Turner would not comment when contacted by brisbanebusinessnews.com.au, but a spokesperson said the company is considering the proposal.


Latest News

KOPLOVITZ GIVES SPRINGBOARD TO AGILE ENTREPRENEURS

FOR Kay Koplovitz, the key to being a successful entrepreneur is an agile mind - one that is always learning and q...

VITA GROUP SHARES SURGE UPON RESULTS

VITA Group (ASX: VTG), the Brisbane telco retailer tied up with Telstra (ASX: TLS), saw its share price surge 12 p...

SONAND TURNS THE TIDE AT SURFSTITCH

SURFSTITCH (ASX:SRF) has reduced its losses in the first half of FY17 as new CEO Mike Sonand executed his turnaround ...

EUREKA IMPROVES WHILE MANAGEMENT REMAINS UNIMPRESSED

EUREKA Group has collected the gains on its 'buy and build' strategy to achieve a net profit of $6.29 mill...

Related News

KOPLOVITZ GIVES SPRINGBOARD TO AGILE ENTREPRENEURS

FOR Kay Koplovitz, the key to being a successful entrepreneur is an agile mind - one that is always learning and q...

FASHION RETAILER'S TAKEOVER IN DOUBT AS PROFIT CLIMBS

IN the thick of takeover talks, Specialty Fashion Group (ASX: SFH) worked hard to cut costs and see its bottom lin...

HOW TO TAKE CONTROL OF YOUR CAREER THROUGH TRAINING

GIG economy, remote working, and freelance Friday are more than just buzz terms; our workforce is changing, and so...

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter