The Stanmore Coal Limited (ASX: SMR) share price is down 3% to 96 cents today.
This comes as Golden Investment Pte. Ltd. has refused to budge on its 95¢ per share takeover bid for Stanmore, opting instead to open fire on BDO's independent expert report which valued Stanmore shares in the range of $1.48 to $1.90.
Golden Investments is majority-owned by Golden Energy and Resources, a Singaporean company which owns one of Indonesia's largest coal reserves. In November 2018, Golden Investments announced its off-market takeover bid to acquire 100% of Stanmore Coal at $0.95 per share, which was at the time a 14.5% premium to the last traded price.
The implied $240m valuation was not deemed sufficient by the Board of Stanmore Coal, and shareholders were recommended to reject the offer. The Board pointed to a below-average acquisition premium and an underestimation of the value of Stanmore's existing operations and future growth prospects.
Golden Investments has not sweetened the deal, though; instead hiring its own independent expert, Grant Thornton. In a third supplementary statement released this morning, the bidder declared its offer was "best and final" and referenced a Grant Thornton report which takes aim at BDO's assessment.
The Grant Thornton report attacks several key valuation assumptions made by BDO, including coal price and exchange rate forecasts and an "unusually low" discount rate.
By adjusting these assumptions, Grant Thornton arrived at a valuation range of $0.84 – $1.10 per Stanmore share, a range which makes Golden Investment's offer look far more reasonable. The offer will lapse on the 22 January.
The Stanmore Coal share price has climbed 45% over the last 12 months, compared to the S&P/ASX 200 which has fallen 4.5% in the period.
