After putting itself up for bids and no potential suitors with an attractive enough offer came up, Whitehaven proposed a takeover with Aston Resources to grow itself. It comes with strings attached, ie in order to buy Aston, Whitehaven has to make a bid for Broadwalk Resources as well, an exploration stage company. To facilitate the deal, Whitehaven agreed on a $515 million figure on Broadwalk and more payments when certain mimlestones are met. This is well above an independent expert's valuation.
Seemed like Mr Nathan Tinkler, the founder of Aston and controlling shareholder of Broadwalk, got a good deal.
Now Mr Tinkler is back for more. Putting in a non-binding bid for Whitehaven itself. Due to the uncertainties in the markets recently due to the crisis in Europe, Mr Tinkler is taking advantage of a 30% price fall in Whitehaven to make his bid. Certainly an opportunistic bid which is most likely to be rejected by the board at Whitehaven.
However, lets put a worst case scenario for Greece. The re-election happens and the left-wing wins. This will be followed up by at least a couple of week if not a month of downside volatility.
Maybe Mr Tinkler would make his move maneuvering around the board and going straight to the shareholders in an on-market or off-market bid.
Another to add to the watchlist.
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