Coal miner New Hope Corporation (NHC) has endured another setback to its off-market takeover offer, with the Resource Pacific board labelling the offer as ‘unattractive', following the issue of the bidder's statement on Tuesday.
The revised all-scrip bid offer stands at $754 million.
Chairman Robert Milner urged Resource Pacific shareholders to accept New Hope's offer, saying New Hope had a track record of providing a better return to shareholders.
"In the three years prior to the announcement of New Hope's original bid, New Hope has provided total shareholder returns of 120%, while Resource Pacific (RSP) has provided shareholder returns of 70%," Milner said.
"With this full-scrip offer, New Hope is enabling RSP shareholders to retain their exposure to the growing coal sector, but with a company that has a proven track record of providing superior returns," he added.
Resource Pacific is a producer of semi-soft coking coal and thermal coal.
Paul Jury, managing director of Resource Pacific said: "While we have not had time to read the bidder's statement in full, at first sight we have found nothing to alter our view that this scrip bid is unattractive for shareholders."
He added once the board had analysed New Hope's assertions, it will provide its shareholders with a detailed evaluation of the bid and formal recommendation.
New Hope chairman Robert Milner says accepting the bid would continue RSP shareholders' exposure to the coal industry, but at the same time reduce their risk from exposure to a one-mine company to a larger outfit with a strong balance sheet and access to a port infrastructure, an active exploration program as well as a diverse range of energy projects.
New Hope's initial intention of the offer was revealed on 26 September 2007, with the revised bid announced on 7 November 2007.
New Hope's closed 3 cents down at $2.29, while Resource Pacific lost 2 cents to $2.31.
