Chinese firm launches hostile takeover of Queensland coal miner Carabella

By VCPOST Staff Reporter

Dec 06, 2013 05:14 AM EST

Australian coal mining company Carabella Resources Ltd received an unsolicited bid from China Kingho Energy Group's subsidiary, Wealth Mining, on Thursday. The said offering was at USD0.42 per share, according to Australian Mining.

The Chinese coal miner already owns an 11.06% stake in the Queensland firm. Quinghua Huo, Kingho's founder and chairman, said the acquisition of Carabella is an important initial step in his firm's strategy to develop an asset base in Australia, the report explained.

Wealth Mining said it submitted a confidential and non-binding proposal with similar terms on December 3. However, the firm said it has not received a written response within the acceptable timeframe. Carabella then responded to the unsolicited offer, telling Australian Securities Exchange (ASX) that it will not take any action for the moment. The firm also added it is fielding interests from other interested parties, the report explained.

Meanwhile, the Chinese company said it has submitted the bid directly to Carabella's shareholders, urging them to accept the offer, the report added.

Carabella has hired UBS as its financial advisor, Australian Mining reported.

© 2023 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics