NHC New Hope Coal

[shasta]

Shasta

How do you see the NEC takeover adding to the bottom line!

Despite the large premium NHC are paying, $1.85 looks cheap to me & NHC already have 88.63%, & given the independent valuation range of $2.70 & upwards, if I were an NEC shareholder i'd be wanting $3 a share minimum, if theres "value to be unlocked" in NEC why are there Directors rolling over so soon?

The figure suggests a base case production of 500,000t from NEC, or just under 10% of NHC's production.

So this is what NHC are paying a premium for...

Northern Energy is currently transitioning from being a coal developer to a coal producer. It has hard coking and thermal coal development and exploration projects in an advanced stage and is one of the few Australian junior coal companies with marketable Reserves.

The company has a 5 year production target of +7Mtpa by 2015 with its first shipment scheduled as soon as mid 2012 from the Colton Mine in Maryborough.

[shasta]

Don't think the parts should be a problem, as the concrete sleepers and rail are made in Oz. QR usually had stashes of spare sleepers, rail and ballast around the place. Wonder if such 'luxuries' will be allowed with private ownership of the freight services?

I know most of the bigger machines used for track work are either bought 2nd hand from Japan, or leased from Queensland, so they must have a fairly decent size fleet in the state.

Concrete sleepers are about the only thing thats made in NZ used by Kiwirail, China & South Korea do the fit outs & assembly, Germany does the engines...

[mark100]

Despite the large premium NHC are paying, $1.85 looks cheap to me & NHC already have 88.63%, & given the independent valuation range of $2.70 & upwards, if I were an NEC shareholder i'd be wanting $3 a share minimum, if theres "value to be unlocked" in NEC why are there Directors rolling over so soon?

The figure suggests a base case production of 500,000t from NEC, or just under 10% of NHC's production.

So this is what NHC are paying a premium for...

Northern Energy is currently transitioning from being a coal developer to a coal producer. It has hard coking and thermal coal development and exploration projects in an advanced stage and is one of the few Australian junior coal companies with marketable Reserves.

The company has a 5 year production target of +7Mtpa by 2015 with its first shipment scheduled as soon as mid 2012 from the Colton Mine in Maryborough.

See NEC thread:
http://www.sharetrader.co.nz/showthr...&highlight=nec

NHC only got just over 80% of NEC so it appears for the time being it will remain listed. I sold into NHC's offer but I reckon we will see a mop up bid by NHC in the future once the necessary time has passed.
NHC got NEC for a steal. The NEC board basically run out of options and had to roll over. They had an alternate bidding consortium lined up which fell through at the last minute. NHC's bid was closing in a matter of days and there was a real risk the share price would fall hard if the NHC bid expired with no alternate bid

[mamos]

What is the necessary time to elapse before another offer can be made?

Is XINGANG RESOURCES HONG KONG LTD likely to sell into a higher offer or hold for strategic reasons?

[mark100]

6 months. Robert Milner from New Hope was on lateline business last night www.abc.net.au/lateline/business and the topic was touched on briefly.

He said its 6 months before they can do anything and then he mentioned the 3% pa creep provision.

He also mentioned NEC would need funds soon and a rights issue was possible. This could be a scare tatic of course to keep the share price in check. The reality is NHC don't want NEC listed anymore.

The main reason Xingang is there is for the coal. They already have an offtake agreement and with NHC the controlling shareholder by a large margin I expect they would sell at the right price, provided they get to keep the off-take agreement.

I sold all my NEC into the takeover but intend to keep a close eye on NEC over the next few months and take a position when we get closer to the 6 month expiry

[lawrence]

Interesting what he said about the bottom line when and if the Carbon Tax comes in!

[lawrence]

hmm $5.44 heading north something is either chasing it or a tap is leaking in head office!!

[mark100]

6 months. Robert Milner from New Hope was on lateline business last night www.abc.net.au/lateline/business and the topic was touched on briefly.

He said its 6 months before they can do anything and then he mentioned the 3% pa creep provision.

He also mentioned NEC would need funds soon and a rights issue was possible. This could be a scare tatic of course to keep the share price in check. The reality is NHC don't want NEC listed anymore.

The main reason Xingang is there is for the coal. They already have an offtake agreement and with NHC the controlling shareholder by a large margin I expect they would sell at the right price, provided they get to keep the off-take agreement.

I sold all my NEC into the takeover but intend to keep a close eye on NEC over the next few months and take a position when we get closer to the 6 month expiry

And there is the mop up bid. No conditions at $2. Picking up stock lately at $1.50 has been very easy to do unfortunately due to the dodgy market I was only holding half of my intended holding, the bid coming around a month earlier than I expected.

The bid is free from all conditions and is final. Still a question market whether Xingang will accept hence NEC could feasibly still remain listed after this bid and we could get a chance to do this all over again

[mark100]

Looks like Xingang have just sold. A 16.3m trade just went through, being the size of their holding

[soulman]

I am glad someone got in. I was looking at NEC for that opportunity, especially when they hit $1.50ish.

So, Xingang hold on for just over 8% return in 5 months. Is that worth it? Probably in this investment climate it's not a bad annualised return.