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We should take a page from coal works books regarding okapi


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Coalworks said the $1-a-share takeover offer from Whitehaven Coal materially undervalues the company. Photo: Louie Douvis



Coalworks is focused on developing coking and thermal coal projects into production: the Vickery South project in the Gunnedah Basin, the Ferndale
Coalworks has stepped up its calls for shareholders to reject a $142 million takeover offer as well as a separate bid to dump its chairman and chief executive.

In notes accompanying a presentation to investors on Thursday, Coalworks said the $1-a-share takeover offer from Whitehaven Coal materially undervalues the company.

Coalworks also believes the offer does not reflect the company's growth prospects or the savings Whitehaven would achieve through the takeover.

"The board also believes the offer is opportunistic and has been timed to coincide with a separate attempt to destabilise Coalworks by calling a general meeting to remove Coalworks independent chairman and managing director/chief executive officer," the notes said.

Macquarie Bank has called a general meeting of Coalworks shareholders on June 15 so they can vote on its push to remove chairmanWayne Mitchell and managing director Andrew Firek.

The investment bank wants to replace the pair with its own nominees, Anthony Ferguson and Johann Jooste-Jacobs.

But Coalworks told investors the nominees were unknown to the company and would need to spend time understanding its operations and assets.

In urging shareholders to reject the appointments, Coalworks noted that if the pair were appointed, its board would be entirely comprised of directors nominated by Whitehaven and Macquarie.

"A board comprising three directors each nominated by Macquarie and Whitehaven/Boardwalk is not able to independently and fairly assess the offer that has been made by Whitehaven," Coalworks said.

"Coalworks current board is best placed to ensure that decisions made by the board are in the best interests of all shareholders and not just Macquarie and Whitehaven/Boardwalk."

Whitehaven Coal already owns a 17.3 per cent stake in Coalworks, following the recent acquisition of Aston Resources and unlisted Boardwalk Resources.


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