The sale of 30% of BW for US $1.08b is an excellent result for WHC- well done, management. It should also be noted that the WHC negotiating position, with the new potential buyers of part of BW, was weakened by the big drop in met coal prices since April 2024- when the takeover occured.
The total sale of BW and Daunia to WHC was US $3.2b (with an extra US $900m, to US $ 4.1b, if met coal sold for high prices from 1.7.24- 1.7.27.Total A $6.4b).
It was widely predicted that 20% of BW might attract a payment of c. US $500m- thus 30% might attract c.US $750m. WHC has received an extra US $330m, in a period of a large drop in met coal prices since April 2024!
The Aust. Mining Journal The Editor stated , in June 2024, that
"If a 20 per cent selldown at Blackwater is successful, the deal is widely speculated to fetch up to US$500 million (A$760M). The money could be used to help establish a joint venture business model".
It is also noted that the Announcement states that WHC debt, on 30.6.24, was a very manageable A$1.3b (US 2b was already paid to BMA on 2.4.24); & that a fully franked dividend of 13c would be paid.
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