Farallon Funds have bought 101.6 million shares in Whitehaven Coal, a 9.91% stake, from Nathan Tinkler.
Before the sale Tinkler held 19.4% of the company. Farallon paid $2.26 per share.
Farralon is Tinkler’s long-term financier. Media reports have speculated it may be trying to ease selling pressure on Whitehaven shares by forcing other funds that held short positions against it to buy stock.
Though the AFR’s Street Talk column reported after the sale that sources said funds have bigger worries than Tinkler’s financial problems, like weak coal prices.
in a statement, reported by Street Talk, Whitehaven said this: “While we are happy with the price we have received, being a 40 per cent premium to the current market price and a recent high for the company, we feel strongly that this still significantly undervalues the company’s underlying asset base.
“Many will be aware of the emotional attachment that Mr Tinkler has to the assets of the company, specifically Maules Creek, and that selling this stake was a difficult decision. However we believe that no longer being a substantial shareholder of Whitehaven will benefit all existing shareholders.”
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