Straits sells coal stakes
Colin Jacoby
Monday, 18 August 2008
DIVERSIFIED resources company Straits Resources has agreed to sell its coal interests in Madagascar and Brunei to its Singapore-listed subsidiary Straits Asia Resources for $US100.3 million ($A115.7 million) as part of the proposed restructure announced in April.
Perth-based Straits Resources said in a statement that the sale of its coal interests would recapitalise the company and allow management to focus on creating a diversified metals and mining business.
“The sale of the coal interests is an important step in delivering value to shareholders by demerging the coal business and unlocking unrecognised value in Straits Resources’ metals and mining business,” Straits Resources chief executive Milan Jerkovic said in a statement.
“Straits Resources shareholders will still retain exposure to the Straits Asia coal platform and these two coal interests in conjunction with the proposed restructure.”
The sale price was based on an independent valuation of the coal interests.
Straits Resources has engaged an independent expert to consider whether the transaction is in the interests of shareholders.
The sale of the coal interests are conditional on approval by shareholders of both companies.
Shares in Straits Resources have shed 11c to $4.89 in late morning trade.
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