Bloomberg reported that Banpu Plc Thailand biggest coal producer, agreed to buy the shares it doesn’t already own in Hunnu Coal Ltd valuing the Australian explorer seeking to develop mines in Mongolia at AUD 477 million.

The Bangkok based company said in a statement that Banpu which owns about 12% of Hunnu Coal is offering AUD 1.80 cash for each share. That’s 30% more than the September 8 close of the Perth based company, whose board today unanimously recommended the bid.

Buying Hunnu will give Banpu full control of a company that owns 11 coking and thermal coal projects in Mongolia, home to one of the world largest unexploited reserves of the fuel. Banpu which last year agreed to buy Australia Centennial Coal Co has said Mongolia coal industry has great potential because of its closeness to markets including China.

Mr Matthew Whittall a Hong Kong based analyst at Renaissance Capital Ltd said “This bid by Banpu takes a lot of pressure off Hunnu management and it’s not surprising that they recommended this bid because it basically removes any pressure on them to finance these projects. They have large resources that are close to China.”

(Sourced from Bloomberg)