Coalworks urges shareholder rejection of takeover bid
The Board of Coalworks has urged the company’s shareholders to reject Whitehaven Coal’s takeover offer, describing the move as ‘inadequate and opportunistic and that it significantly undervalues’ the company.
The board outlined the main reasons in rejecting the offer:
- The offer does not reflect the inherent value of Coalworks’ portfolio of assets nor their growth potential at a time when Coalworks is moving closer to delivering on its strategy of building an independent Australian coal producer.
- The offer is opportunistic and has been timed to coincide with a separate attempt to destabilise Coalworks by calling a General Meeting to alter composition of the Board by removing Coalworks’ Independent Chairman and Chief Executive Officer.
- The offer does not reflect the significant synergistic benefits that Whitehaven could achieve by gaining control of Coalworks.