Document Actions
Galilee (formerly Eastern Corp) may float NZ coal business
2 July 2010 - Galilee Energy Ltd, formerly known as Eastern Corporation Ltd, is considering a partial float of its New Zealand coal assets to finance further exploration and development.
Sources: Galilee Energy and Lindsay Clark
The Brisbane-based Galilee, which changed its name on 1 June as part of a greater concentration on coal seam gas energy in Queensland, operates the Takitimu coal mine in Southland and the Cascade mine in Buller.
Galilee Energy announced it is currently conducting a strategic review of its New Zealand coal assets and is considering a potential Initial Public Offering (IPO) of its coal assets into a separate ASX-listed entity.
The Galilee board says it is looking at the feasibility, structure and size of any such transaction. Should the proposal proceed, it is likely that:
- It would be by way of a public offering of new shares in a holding company of the New Zealand coal assets;
- Galilee would retain a significant minority stake; and
- Eligible Galilee shareholders would be offered a priority allocation in respect of a yet to be determined percentage of any public offer.
The company says that if the transaction does go ahead it will depend, among other things, on market conditions, ASX requirements, other Australian and New Zealand regulatory requirements and investor appetite.
Related links
Coal production statistics - Coal permits - Online technical database
