Golden Energy shares have trebled this year, but potential buyout hints they are still undervalued
FIVE months since a key Australian subsidiary of Golden Energy and Resources : AUE 0% (Gear) completed what it deemed a “transformational” acquisition of metallurgical coal assets Down Under, the Singapore-listed miner may be set for another deal – as the target of the Widjaja family of Indonesia’s Sinar Mas empire.
On Monday (Oct 10), Gear, which owns one of Indonesia’s largest coal miners – Golden Energy Mines – revealed that it was in talks with certain shareholders, including Indra Widjaja, on a “possible acquisition” of the company. No concrete outcome or definitive agreement has emerged from the discussions.
One factor that may have prompted this latest consideration, say observers, is that Gear is undervalued. On Monday, Gear’s stock hit a high of S$0.935 on the back of the news. It closed at S$0.905, up nearly 8 per cent from last Friday’s finish. It was hovering at the same level on Tuesday.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Gazelle Ventures’ cash offer for No Signboard closes with 0.5022% valid acceptances
Dow briefly sprints past 40,000-mark on earnings boost, rate-cut bets
Goldman strikes US$43 billion investing deal for UPS pension funds
US: Wall Street opens nearly flat after CPI-driven rally
Blackstone to buy Priority Software stake in biggest Israel deal
Hugo Boss and David Beckham partner up for design collection