After a week of talks, Whitehaven Coal Limited (ASX:WHC) and Aston Resources (ASX:AZT) have agreed to a $5.1 billion merger.
Aston shareholders are to receive 1.89 Whitehaven shares for each Aston share, and Whitehaven shareholders will receive a special dividend of 50 cents per share prior to the merger transaction.
The Tinkler Group owns about 32 per cent of Aston Resources, and has indicated it will vote in favour of the merger. Whitehaven’s also proposed to buy another Tinkler-owned coal company, Boardwalk Resources, whose investors will receive 85.88 million Whitehaven shares for the deal.
Whitehaven chairman John Conde says the merged entity will be one of Australia's leading independent coal producers with high quality producing mines, major development projects and attractive exploration assets.
Whitehaven Coal Limited (ASX:WHC) posted a profit of almost $10 million in the 2011 financial year.
