Reuters reported that China Kingho Energy Group, a private company, has made a $60-million bid for Carabella Resources Ltd. (ASX:CLR), an Australian coal explorer. The news outlet describes the move as indicative of China’s interest in purchasing cheap coal assets in the land down under.
As quoted in the market news:
Kingho unit Wealth Mining made the bid on Thursday after acquiring 11 percent of Carabella’s shares and failing to get a response from Carabella’s board to an all-cash takeover offer of A$0.42 a share, valuing the group at A$66 million ($60 million), submitted earlier in the week.
“We wish to acquire Carabella as an important first step in Kingho’s strategy to develop an Australian headquarters for our global resources and development businesses outside of China,” Kingho chairman and founder Qinghua Huo said in a statement.
Carabella is being advised by UBS and said it would respond to the offer in early 2014 and told shareholders to take no action.