Mongolia-focused coal explorer Hunnu Coal has backed a $477 million takeover bid by its biggest shareholder, Thai coal miner Banpu Public Company.
The target described the cash offer of $1.80 per Hunnu share as highly compelling, representing a significant premium to the company's recent trading prices.
Shares in Hunnu were placed in a trading halt on Friday and last traded at $1.385.
"The board of directors of Hunnu has unanimously recommended that Hunnu shareholdersaccept Banpu's share offer, in the absence of a superior proposal," Hunnu said in a statement on Monday.
Banpu in March acquired a stake of about 12 per cent in Perth-based Hunnu, which holds several projects in Mongolia's Gobi Desert.
Banpu last year also acquired Australian coal miner Centennial Coal for more than $2 billion.