The S&P/ASX 200 Energy Index (ASX: XEJ) has climbed 5.21% this week, but one ASX energy share has easily outperformed the index.
The Australian Pacific Coal Ltd (ASX: AQC) share price has soared 196.3% from 13.5 cents at market close on Friday to the current share price of 40 cents.
So why is this ASX energy share having such a good run this week?
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What's going on with Australian Pacific Coal shares?
Investors have been buying up Australian Pacific Coal shares after the company announced news of a takeover bid.
Australian Pacific received a non-binding alternative proposal on the sale of its Dartbrook coal project in New South Wales from Naveko Pty Ltd.
The plan involves Naveko providing instant funding to Australian Pacific via an equity subscription for 19.97% of Australian Pacific shares for a total of $3.78 million. Nakevo is also proposing to make a takeover bid for Australian Pacific for up to 30 cents per share.
In April, the company received an offer from major shareholder and creditor Trepang Services Pty Ltd.
Nakevo's proposal, received on Friday, is still at an early stage. Australian Pacific said the offer is "conditional" and "requires further consideration".
Meanwhile, the outlook for the coal price could also be providing Australian Pacific with a boost.
In FY22 results released last week, ASX coal share Yancoal Australia Ltd (ASX: YAL) predicted thermal coal prices will remain elevated in 2023. Yancoal said:
Ongoing supply-side constraints and demand resulting from shortages and disruption to global energy markets should sustain elevated prices for seaborne thermal coal into 2023.
The coal price has soared more than 146% in a year, according to Trading Economics data.
Share price snapshot
This ASX energy share has surged 135% in the past year and 167% in the year to date.
In the past month, Australian Pacific shares have rocketed 281%.
Australian Pacific Coal has a market capitalisation of $20.2 million, based on the current share price.
