Coal miner Bayan Resources (BYAN) will acquire 44.95% shares of Australian miner Kangaroo Resources Limited (KRL) for US$515 million, said the company on August 17. Bayan currently holds approximately 56.05% of Kangaroo. Bayan bought Kangaroo’s shares at $0.15 per share. The offer price represents 275% premium to the closing share price on May 4, 2018. The transaction its expecting to be close on Dec. 6, 2018.
Kangaroo’s primary focus has been to create shareholder value through the development and eventual production of thermal coal from its Pakar North, Pakar South and GPK projects in East Kalimantan, leveraging off its contractual rights to utilise up to 30 percent of the available capacity at Bayan’s infrastructure assets, principally the Tabang haul road and Senyiur Port.
The parties have also entered into a strategic agreement which provides a more formalized framework of cooperation and support to enable the parties’ coal mining projects to be co-developed in order to maximize use of the infrastructure and allow both Bayan and the Kangaroo to optimize outputs and profitability from their respective projects.
