Chinese coking coal major Kingho makes $60m bid for Carabella
China’s Kingho Energy Group has made an off-market bid for Australian coking coal development company Carabella Resources, Carabella said in a statement on Thursday December 5.
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Kingho made the cash offer of A$0.42 per share for Carabella on December 3, announcing that it had obtained an 11% share in the Australian coal company. The bid values the coal junior at A$66 million ($60 million).
Carabella, which is developing the Grosvenor West hard coking coal mine in the northern Bowen Basin and the Bluff pulverized coal injecvtion (PCI) project, advised shareholders to take no action in response to the bid on December 5.
“The board is considering its position in relation to the offer and will set out its recommendation in the company’s target statement in early 2014,” Carabella said.
Kingho is China’s largest privately-owned coal mining company.
The energy giant announced plans to develop $6bn worth of iron ore infrastructure in Sierra Leone in May.