Shares of coal miner New Hope have soared this morning after the company said it has received several takeover proposals and will launch a formal process to assess the offers.
In early trade, the shares rose as much as 20 per cent and were recently up 17.6 per cent at $6.20, valuing the company at $5.2 billion.
The company said this morning it had received a number of preliminary and incomplete proposals from third parties relating to potential change of control deals.
The board believed it was appropriate to undertake a formal process to determine whether a proposal for New Hope was available at a price, and on terms that were in the best interests of all its shareholders, New Hope said.
Selected parties would be invited to submit proposals to the board as part of the formal process.
It was expected to take several months, and may or may not result in a proposal being made or recommended by the board, the company said.
‘‘It is the duty of the board to consider legitimate opportunities for the company which may be in the best interests of all shareholders,’’ New Hope chairman Robert Millner said in a statement. ‘‘A formal process will allow the board to assess these opportunities in a considered manner, with minimal disruption to New Hope’s day-to-day business activities.’’
New Hope owns the New Acland mine, about 150 kilometres west of Brisbane, and the West Moreton mines 23 kilometres west of Ipswich.
It said last month it planned to double output over the next five to seven years, after reporting a full year profit of $503.1 million.
AAP, Reuters