White Energy, ASSAC cancel merger deal

ASX-listed firm White Energy Company Limited (WEC) said on Thursday that it had reached agreement with US-listed firm Asia Special Situation Acquisition Corporation (ASSAC) to mutually terminate the Merger Implementation Agreement

The Federal Court of Australia on Wednesday made orders cancelling the meeting of shareholders and optionholders convened for Nov. 23, 2009 and dismissing White Energy?s application generally in relation to the previously proposed scheme of arrangement, the company said.

In December 2008, WEC signed a binding letter of intent with ASSAC whereby WEC agrees to merge its South East Asian business into ASSAC.

WEC will own 56 percent and ASSAC?s existing shareholders will own 44 percent of the merged entity.

WESEAC?s assets will include the exclusive rights to utilize WEC?s unique patent-protected coal upgrading technology, which generates a more energy efficient, cleaner burning coal, in the key Asian markets of Indonesia (where it already has operations through its wholly owned subsidiary, BCBC Singapore Pte Ltd), Singapore, Malaysia, Vietnam and the Philippines.

WEC has 51% share of two joint ventures in Indonesia, both with Bayan Resource Group and with Adaro Group and Itochu Corporation.

The two joint ventures are the Tabang Coal Upgrade project (PT Kaltim Supacoal), a partnership with Bayan; and the Adaro Coal Upgrade Project, a partnership with Adaro.

The Tabang Coal Upgrade Project is designed to have an initial capacity to upgrade 1 million tons per annum (MTPA) of low grade coal to higher grade and more valuable coal in Q1 2009 with the objective of having a total production of 5 MTPA by 2011.

The Adaro Coal Upgrade Project is designed to have an initial capacity of 1 MTPA, which is projected to increase to 5 MTPA by 2012 and eventually to 8 MTPA. (denny)