Sign up | Log in



Home  >>   Daily News  >>   Thailand News  >>   Commodities   >>   Banpu eyes takeover of Australia's Centennial
NEWS UPDATES 6 July 2010

Banpu eyes takeover of Australia's Centennial

Related Stories

December 15, 2009
Thai leather industry anticipates rebound in 2010

November 7, 2009
Philippines to import rice from Vietnam and Thailand

July 23, 2009
India’s Tata to open new $112mn furnace in Thailand

June 24, 2009
India’s steel products face anti-dumping duty in Thailand

April 28, 2009
Thai firm to open new Indonesian mine by Q3

Banpu Plc, Asean's biggest coal producer, is preparing to take over Australia's Centennial Coal in a deal worth A$2 billion (54.47 billion baht), the biggest overseas deal by a Thai company, the Bangkok Post reports.

Somruedi Chaimongkol, chief financial officer at Banpu, said the deal was a big step in its strategy to extend its investment in the three most significant countries in the coal industry. "Centennial is the leader in thermal coal mining in Australia. It operates 15 million tonnes of production per year from three mines across the country," said Ms. Somruedi.

Australia is the world's biggest coal exporter, followed by China and Indonesia.

"It is part of our long-term strategy to make a presence in these three countries," she said. "The return on investment is also clear, as we have plans to raise coal prices soon, while Centennial has a lot of output."

Banpu has agreed to pay A$6.20 a share, 40 percent more than Centennial's closing price of A$4.42 last Friday. It intends to acquire at least 50% of the shares of the Sydney-based company, including an existing stake of 19.9%.

Achieving its minimum holding target of 50.1% will require about A$1.2 billion, while buying up all the shares would cost A$2 billion.

She denied analysts' earlier comments that the deal was triggered by Australia's decision last week to cut a new tax on mine profits from 40 percent to 30 percent after miners claimed it would cripple new investment.

Banpu's offer is priced at 11.16 times Centennial's earnings before interest, tax, depreciation and amortisation. That's almost double the 6.77 times EBITDA that Yanzhou Coal Mining Co paid when it won Australian government approval for its A$3.5-billion takeover of Felix Resources Ltd last year.

Coal prices have been rising this year in line with demand in Asia, climbing above $100 a tonne for the first time in May.

Banpu shares closed yesterday on the Stock Exchange of Thailand at 614 baht, up 12 baht, in trade worth 916 million baht.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand