MC Mining attracts new takeover interest as Vulcan Resources tops Goldway Capital bid

Coal miner MC Mining (ASX: MCM) has attracted a second takeover offer – just days after it told its shareholders to ignore an earlier acquisition bid.

MC Mining has confirmed it has received a proposal letter from private Indian company Vulcan Resources, valuing it at between $69.34 million and $81.58m.

Vulcan Resources, a subsidiary of Vulcan International, is the operator of the Moatize coal mine in Mozambique, the largest operating steelmaking coking coal mine in Africa.

MC Mining (formerly Coal of Africa) has coal exploration, development and mining interests in South Africa.

Cash takeover offer

Vulcan’s non-binding proposal is an off-market cash takeover offer for all the shares in MC Mining at an indicative price of between $0.17 and $0.20 cents per share.

The offer comes just days after MC Mining told its shareholders to take no action after a formal target’s statement was released for a November 2023 $0.16 cash per share off-market takeover bid by Hong Kong incorporated Goldway Capital Investment.

That offer valued the company at $65.3m.

While noting that Vulcan’s offer is higher, Vulcan’s independent board committee (IBC) also stated that there is no certainty that any formal offer by Vulcan will be received.

The IBC also reiterated its recommendation to shareholders not to accept the current Goldway offer.

The IBC said it will now evaluate the indicative terms of Vulcan’s proposal letter and take on advice from its Australian and South African legal and financial advisors.