Coal miner Golden Energy and Resources (Gear) is looking to consolidate its stake in its subsidiary – Golden Investments (Australia) – with a cash consideration of US$30 million ($41.0 million).
With this, Gear will buy out the 20.33% or 32.55 million shares in Global Investments (Australia) held by the Ascend Global Investment Fund. Presently, Gear holds the remaining 79.7% or 127.3 million shares.
Global Investments (Australia) currently holds around 75.33% of the total issued ordinary share capital of the Australian exchange-listed Stanmore Resources.
The US$30 million cash consideration price tag was arrived at on a “willing-buyer and willing-seller basis” after taking into account inter alia, the net asset value of the sale shares of Golden Investments (Australia).
In its Dec 10 regulatory filing, Gear says the acquisition – which is slated to be completed in seven days – will not have any material impact on the group’s earnings per share.
It adds that this may decrease the consolidated net tangible asset of the group by around 6.4% for FY2021 ending on Dec 31.
See also: De Beers loses more diamonds to Botswana in last minute deal
Shares’s in Gear closed at 31 cents, down half a cent of 1.59%, before the announcement.
Cover image: file photo
