According to the report of ACBNews, China Kingho Group has acquired (off-site purchase) more than half shares of CarabellaResourcesASX: CLR, a coal mining enterprise in Queensland. According to the mutual agreement, three directors nominated by (Wealth), a wholly-owned subsidiary of China Kingho Group in Australia will serve as the directors of CarabellaResourcesASX: CLR and the former board of directors of Wealth will be immediately dissolved.
    In December 24, the tender offer price of China Kingho Group was increased to A$ 0.455 per share, with a premium ratio of 128%. After the new program was unanimously agreed by the board of CLR, China Kingho Group began to carry out a large-scale off-site purchase of CLR shares. According to today’s latest bulletin, China Kingho Group has maintained a share proportion of 65.77%. Last week, Wealth announced to the public that the tender offer had fulfilled all the preconditions.
    CLR said in a statement on Tuesday that Wealth owned a share proportion of more than 50%. Because controlling interest of the company was transferred and there were no appropriate conditions to transfer the offer, Wealth had nominated DennisShen, IanHutchinson and Soo-TeeCheong new members of the board for CarabellaResourcesASX: CLR in accordance with the Tender Offer Implementation Agreement signed by both parties.
    In addition, the company’s current members of the board, Amer, Addison, Fidock, Kidston and Quin had all submitted their resignations, which took effect in the afternoon on the same day. However, only the current Chief Executive Officer remains unchanged in the hand of Quin. Nomination of candidates for the new board members will take effect in synchronization with the resignation.
    In the statement, CarabellaResourcesASX: CLR expressed their gratitude to the former board members for their outstanding contributions to the company's operation and acquisition negotiations, and expressed heartfelt wishes to future success of the newly-established board and Wealth.
    With structural upgrading and adjustment of China’s coal industry, more and more enterprises are attracted by overseas coal resources (especially the high-quality coal resources in Australia) to go out for “gold rush”. At the same time, sluggish coal price and dramatic shrinkage of coal assets also can provide an excellent opportunity for Chinese enterprises to purchase ores abroad. Queensland, where Carabella project is located, is an important coal production area in Australia. In 2012, the output of coking coal accounts for 84% of the total export volume. Infrastructures for local coal export are complete and the export capacity has witnessed a steady increase.
    Listed in 2010, Carabella is specialized in coal exploration & exploitation and wholly owns a prospecting area of 4412 square kilometers in Queensland. Currently, flagship asset --- GrosvenorWest hard coking coal project is at the stage of feasibility study, while Bluff PCI coal project is the focus of recent development and is expected to be commissioned in the first quarter of 2014.
    China Kingho Group is a large private conglomerate of China. It has a total asset of A$6.95 billion and an operation revenue of A$1.94 billion in 2012. China Kingho Group plans to set up global resources and development business in areas and districts outside China, with proposed headquarters in Australia. The acquisition of Carabella is the primary step in the global resources development strategy of China Kingho Group. The deadline for this offer is January 29, 2014.