London-listed mining giant Anglo American is understood to have picked a winner in the $US2bn-plus contest for its Australian coal mines, say sources.
The understanding is that a preferred candidate was chosen by the mining giant on Saturday morning Australia time, and an announcement on the outcome is expected as early as Monday.
Yancoal is understood to have been told it was out of the contest and then brought back in on the final action after improving its offer, but its pursuit ended late last week.
It leaves one of two consortiums that will take the prized assets: one led by Stanmore Coal, the other by Peabody Energy.
Final bids were due on November 13, with three offers lobbed, including one from Yancoal, another from the Australian-listed Stanmore Coal, which is 64 per cent owned by Indonesia’s Golden Energy Resources, 7.6 per cent by Regal Funds and 5 per cent by Matt Latimore, and the US-listed Peabody Energy.
Peabody is understood to have brought in plenty of reinforcements, with consortium partners in addition to Indonesia’s BUMA in its Moelis-advised camp.
Earlier, Yancoal was considered the favourite to win the race, based on price.
Stanmore, advised by Grant Samuel, had outlined funding plans at its full-year results presentation to investors at August should it be successful in the contest.
Sources say that after final bids landed, another round of the auction was run, where the last parties in the mix were asked to improve their bids akin to a ‘black box’ due diligence round.
The value of the assets is believed to be more than $US2bn.
GEAR and M Resources has already purchased South32’s Illawarra Coal for $2.5bn this year.
Selling the coal assets is a defensive move by Anglo American, which may see its share price re-rate and make a buyout by BHP more difficult without paying a high price after the mining giant made a play for Anglo American this year.
Already, Brisbane billionaire Sam Chong exercised his option to buy the remaining stake in two coal mines ahead of other suitors in the portfolio, outlaying $1.6bn for the 33.3 per cent stake he did not already own in the Jellinbah East and Lake Vermont metallurgical coal mines.
Working for Anglo is Goldman Sachs and Morgan Stanley.
Jarden deal-makers sharpen their focus on lifting share
This year expect more Australian corporations to reshape their portfolios and private equity to consider floats as an investment exit option, says Jarden Group.
Debt capital markets proceeds up
Debt capital markets proceeds for Australia increased more than 16 per cent in 2024 compared to the previous year as corporates became more confident that inflation was being reined in.