NEW HOPE OFFER REJECTED BY NEC

Written on the 10 November 2010

NEW HOPE OFFER REJECTED BY NEC

NORTHERN Energy Corporation Limited (NEC) has rejected New Hope Corporation Limited’s (NHC) $192.6 million takeover offer, citing the proposal as ‘undervalued’.

Managing director Keith Barker says the company could not reveal what an appropriate price for NEC shares would be, after rejecting the $1.50 per share offer.

"It's materially undervalued the value of the company, but we're not about to quantify that at this point ," he says.

Barker says the offer is opportunistic and taking advantage of share price weakness based on a variety of factors.

"Over the last few months we've had uncertainty with the resource profits tax, the Federal election, and speculation about the approval process for the Maryborough mine."

Chairman Chris Rawlings highlighted the underlying value and growth potential of Northern Energy’s coal portfolio, along with long-term development assets.

“The board considers this offer inadequate – this offer has come as the company is on track to begin coking coal production at Maryborough in 2012,” he said in a statement.

“We are also currently testing several expansion options at Maryborough and we will provide the market with these updates in due course.”

New Hope chairman Robert Milner, commented last week that the $1.50 per share proposition would allow greater access to capital for NEC, which is well-needed given the company’s project plans.


Latest News

DREAMWORLD PARENT COMPANY DEMOTES CEO DEBORAH THOMAS

ARDENT LEISURE, the parent company of Gold Coast's Dreamworld theme park, has reshuffled its core leadership w...

MELBOURNE SHOPPING CENTRE SELLS FOR $48m AS CHINESE DEMAND RAMPS UP

A MELBOURNE shopping centre has been sold for $48 million, bringing the total spent by Chinese investors on Victor...

HOW WEDDING WOES INSPIRED A BOOMING BUSINESS FOR MEGAN ZIEMS

WHEN she was dress shopping for her wedding in 2010, Megan Ziems (pictured left) was disappointed to discover a ma...

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter