MARKET DEVELOPMENT
Palm Oil King Takes Whitehaven Stake
Palm Oil King Takes Whitehaven Stake
21/06/2013 (The Australian) - The head of the world's largest processor of palm oil has emerged as a new shareholder on Whitehaven Coal's register following Nathan Tinkler's exit from the stock to pay down his significant debts.
In a notice to the Australian Securities Exchange yesterday, Martua Sitorus, co-founder and chief operating officer of Singapore-listed Wilmar International, and companies associated with him, were revealed as holders of a 5.8 per cent stake in the company.
The filing outlined that the Indonesian billionaire and companies listed at the same address as his venture -- Golden Parklane, Bolney Enterprises and Burlingham International -- had purchased 9.53 million shares for $28.2 million.
Mr Tinkler was forced this week to sell his main asset -- a 19.4 per cent stake in Whitehaven -- to clear the bulk of his debt to financial backer Farallon Capital. The hedge fund said on Wednesday it had bought 9.91 per cent of Mr Tinkler's interest for $2.96 a share, which lifted its stake in Whitehaven to 16.62 per cent.
Whitehaven Coal had said that Farallon had advised the miner that the balance of Mr Tinkler's shares had been sold to other members of the Tinkler lending syndicate.
Mark Busutil, analyst at JPMorgan, said the question now turned to Farallon's intention for its increased stake.
"In our view, it is unlikely Farallon are immediate sellers, having paid a substantial premium for the stake. It is harder to judge on the remaining syndicate, who own over 9 per cent of the company, albeit they are referred to as long-term holders."
Mr Tinkler's debts have long been rumoured to be about $700m, with Farallon the main creditor and Credit Suisse and Kuok Group also owed loan repayments. He is said to have received about $600m for the share sale and while it was to pay off his debts, it is understood he took some cash from the deal and Farallon remained a creditor for an undisclosed sum.
Shares in Whitehaven had jumped on the news on Wednesday but its shares were caught in the general market downturn yesterday and were off 0.45 per cent at $2.19.
RBC Capital Markets analyst Chris Drew said now that the uncertainty around Mr Tinkler's interest had been removed, the focus for the market should return to the operations, particularly resolution of moisture issues at Whitehaven's Narrabri operation and final approval for Maules Creek.
In a notice to the Australian Securities Exchange yesterday, Martua Sitorus, co-founder and chief operating officer of Singapore-listed Wilmar International, and companies associated with him, were revealed as holders of a 5.8 per cent stake in the company.
The filing outlined that the Indonesian billionaire and companies listed at the same address as his venture -- Golden Parklane, Bolney Enterprises and Burlingham International -- had purchased 9.53 million shares for $28.2 million.
Mr Tinkler was forced this week to sell his main asset -- a 19.4 per cent stake in Whitehaven -- to clear the bulk of his debt to financial backer Farallon Capital. The hedge fund said on Wednesday it had bought 9.91 per cent of Mr Tinkler's interest for $2.96 a share, which lifted its stake in Whitehaven to 16.62 per cent.
Whitehaven Coal had said that Farallon had advised the miner that the balance of Mr Tinkler's shares had been sold to other members of the Tinkler lending syndicate.
Mark Busutil, analyst at JPMorgan, said the question now turned to Farallon's intention for its increased stake.
"In our view, it is unlikely Farallon are immediate sellers, having paid a substantial premium for the stake. It is harder to judge on the remaining syndicate, who own over 9 per cent of the company, albeit they are referred to as long-term holders."
Mr Tinkler's debts have long been rumoured to be about $700m, with Farallon the main creditor and Credit Suisse and Kuok Group also owed loan repayments. He is said to have received about $600m for the share sale and while it was to pay off his debts, it is understood he took some cash from the deal and Farallon remained a creditor for an undisclosed sum.
Shares in Whitehaven had jumped on the news on Wednesday but its shares were caught in the general market downturn yesterday and were off 0.45 per cent at $2.19.
RBC Capital Markets analyst Chris Drew said now that the uncertainty around Mr Tinkler's interest had been removed, the focus for the market should return to the operations, particularly resolution of moisture issues at Whitehaven's Narrabri operation and final approval for Maules Creek.