Linc Energy still working with UBS to divest non-core coal tenements but no outcome imminent
Linc Energy [LNC:AU] is still working towards a sale of its coal tenements but the process is said to still have a while to play out as the company works on proving up the assets for prospective buyers. Some have questioned whether the non-core assets are still on the market as the protracted sale process has still not yielded an outcome.
Linc confirmed that UBS had been mandated to run the process in September 2009, and it is understood that the investment bank is still very much involved despite media reports claiming otherwise.
Linc has been trying to prove up the assets further as buyers have been reluctant to pull the trigger given their early stage, according to one industry source following the developments.
A source close to the situation confirmed that the focus has been on completing geological work to aid interested parties with their due diligence, such as bringing in consultants to work on mine plans and infrastructure costings. The source claimed that valuations for the tenements had improved significantly given the extra work that has been done plus the current demand for coal. It was further said that the level of interest in the assets has actually increased and interested parties have been working harder to resolve issues.
LNC Price at posting:
$1.53 Sentiment: Buy Disclosure: Held
