Regional Coal: Banpu to take over Australia's Centennial Coal

New South Wales-based coal miner Centennial Coal is recommending its shareholders accept a 100 percent takeover offer valuing at A$2.5 billion from Thai energy giant Banpu Plc

?The Board of Centennial today announced that it had entered into a Bid Implementation Agreement with Banpu, pursuant to which Banpu has agreed to make an all cash off-market takeover bid at A$6.20 per share for all of the Centennial shares not already owned or controlled by Banpu Plc,? the company said in statement on Monday.

Banpu Plc currently owns or controls 19.9 percent of the shares in Centennial.

?Centennial is strategically placed to take advantage of strong demand for thermal coal, with long term domestic contracts expiring in coming years. We also expect to grow production as a result of our new operations at Airly and the Newstan Lochiel Project. Banpu?s Offer recognises both the current profitability of Centennial and its upside.?

Banpu Plc produced 21 million tons of coal in 2009, of which 95 percent was accounted for by its Indonesian-listed coal unit PT IndoTambangraya Megah (ITM).

Centennial is a coal mining and marketing company supplying thermal coal to Australia domestic and export markets. Centennial has ten mines, all located in New South Wales, which produced a combined 15 million ROM tons (equity share) in 2009.

Centennial is a major fuel supplier to the New South Wales energy industry, and also sells approximately 30-35 percent of its coal into the export market, with a strategy to increase exports firmly underway. Coal is exported through ports at Newcastle and Port Kembla in News South Wales. Customers include power stations, steel mills and other industrial users in Japan, Taiwan, Korea, China and Europe. (denny)