News: Carabella backs revised Wealth takeover bid

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Carabella Resources Limited (ASX:CLR) has backed a revised takeover bid from China Kingho Energy Group's subsidiary, Wealth Mining. 

 

The Queensland focused coal mining company scored a $60 million unsolicited bid from Wealth earlier this month comprising of $0.42 per share. 

 

The Chinese coal miner already has an 11.06 per cent stake in Carabella and has since sweetened its bid to $0.455 per share. 

 

The Board of Carabella have unanimously recommended shareholders accept the revised offer, in the absence of a superior proposal. 

 

Both companies have entered into a bid implementation agreement and Carabella expects to issue its target’s statement by the end of next week. 

 

Carabella Resources reported a net loss of $8 million in the 2013 financial year.