Thai coal miner Banpu to buy Australia’s Centennial Coal for $1.7 billion

Thai coal producer Banpu yesterday said that it would buy the 80.1 per cent stock it does not already own in Australia's Centennial Coal for $1.7 billion, in what would be Thailand's biggest overseas acquisition.

Bangkok-based Banpu, which does not operate any coal mines in Thailand, will pay A$6.20 in cash a share, representing a premium of over 40 per cent to Centennial's closing price of $4.42 on 2 July, for the  in the Sydney-based miner.

The offer values Centennial Coal at $2.4 billion.

On 5 May 2010, Banpu had acquired a 14.9-per cent stake in Centennial and bought an additional 5 per cent on 16 July, taking its total shareholding in the company to 19.9 per cent.

The Centennial board has unanimously recommends Banpu's offer to its shareholders saying that the offer price of A$6.20 cash per share delivers compelling value and represents an attractive premium to the recent share price of Centennial.

Centennial is the largest independent coal company in Australia in terms of production and has 9 coal mines in New South Wales. It is a major fuel supplier to the New South Wales energy industry, fuelling approximately 46 per cent of the state's coal-fired electricity.