New Hope Corporation Limited (NHC) announces a $1.50 per share all-cash off-market takeover offer to acquire all the outstanding Northern Energy Corporation (NEC) shares not already owned by New Hope. The Offer values the total equity of NEC at $193 million. New Hope notes that its Offer represents a premium of 57.9% to $0.95, the closing price of NEC Shares on 29 September 2010, being the day prior to New Hope’s formal approach to NEC.
New Hope Chairman Mr Robert Millner said: “We believe this to be a very attractive offer for NEC shareholders as it is at a substantial premium to NEC’s recent trading history. Our offer also provides certainty of value in what has been a volatile period for NEC shareholders. “Northern Energy is a coal exploration company and requires significant amounts of additional capital to develop its project pipeline.”
New Hope is an independent, energy company which has open cut mines at Acland on the Darling Downs, and at Rosewood near Ipswich. The company focuses on niche marketing of its thermal coal and exports around 65% of coal production to Asia Pacific markets including Japan, Korea and Chile with the remainder being consumed by customers in south-east Queensland.