About 5 per cent of listed coal miner Stanmore Resources changed hands after market close on Friday, as its largest shareholder Sinar Mas Group launched a $167 million block trade via Petra Capital.
Street Talk understands the Indonesian giant was the seller behind a line of 45 million shares in Stanmore Resources crossed at 5:42pm on Friday. The trade totalled $167 million and was done at $3.70 a share, or a steep 9.3 per cent discount to Stanmore Resources’ $4.08 last close.
Sinar Mas Group is among Indonesia’s biggest companies with holdings including agribusiness, financial services, paper, real estate, energy and healthcare. Its subsidiary, Singapore-listed Golden Energy and Resources (GEAR), has been the largest shareholder in ASX-listed Stanmore with 64 per cent ownership.
However, GEAR has just been sold to Duchess Avenue – also listed in Singapore – after a year-long process, making the latter Stanmore’s largest shareholder. Duchess Avenue is a subsidiary of Star Success, a company controlled by Indra Widjaja, the son of Sinar Mas’ founding billionaire, Eka Widjaja, who died in 2019. (Both GEAR and Duchess Avenue are related to Sinar Mas’ ultra-wealthy Widjaja family).
Friday’s trade would take GEAR to circa 59 per cent of the register. However, it would still be Stanmore’s largest shareholder. A change is substantial shareholding notice is expected to be filed with the ASX on Monday.
Stanmore Resources declared a special dividend on November 29, citing resolution of “potential M&A”. That was a nod to its bid for BHP’s Daunia and Blackwater coal mines in Queensland, which were won by Whitehaven Coal for about $6.2 billion after a nearly year-long auction.
GEAR was pivotal to Stanmore Resources’ $US1.35 billion acquisition of BHP’s 80 per cent stake in BHP Mitsui Coal assets last year, covering 60 per cent of the $US506 million equity raising which was also handled by Petra Capital. Stanmore has since bought Mitsui’s 20 per cent stake for $US380 million ($534.5 million), taking 100 per cent ownership in South Walker Creek, Poitrel coal mines as well as the Wards Well tenement. In October, it agreed to sell Wards Well’s southern region to Peabody for $US136 million cash and up to $US200 million in contingent royalties.
The stock has gained nearly 60 per cent in the past 12 months and joined the ASX 300 ranks at S&P’s September rebalance. This year it has sold 9.3 million tonnes coal to end of September, with prices in the third quarter rising from $US233 per tonne to $US333.
Stanmore Resources had a $3.47 billion market capitalisation.
