Plan to grow Blackwood, court hears
But when taking the stand, Nathan Tinkler made clear there was a much bigger plan, backed by Noble Group, including the $400 million acquisition of the underperforming Australian coal assets of Brazilian mining giant Vale.
In the wake of the April merger of his Aston Resources and Boardwalk Resources with listed Whitehaven Coal, Mr Tinkler and Noble, which was rolling its Gloucester Coal assets into the separately-listed Yancoal, planned to turn Blackwood into a substantial company. The share placement to Mulsanne - at a hefty 50 per cent premium to the company's then share price - was just the start. "The whole reason [for the placement] was to grow Blackwood," Mr Tinkler said on Thursday.
The idea was to marry Tinkler Group's skills in greenfields development with Noble's skills in commodity marketing. The putative deal, which could also have involved listed junior Guildford Coal, unravelled as coal markets turned adverse in the second half of 2012 and coal stocks fell, making it tougher to raise finance. "Noble didn't expect Yancoal shares to be under $1 and I didn't expect Whitehaven to be trading at $3," he said.
By the end of last year, Mr Tinkler said Noble was a "company under stress" and around October it came back and offered half the previously discussed valuation for the Middlemount royalty. The offer was rejected and alternatives considered. Potential financiers were approached, including hedge fund Och Ziff - which has a stake in Guildford - and investment bank Barclays.
Whitehaven shares struck a fresh low of $2.31 on Thursday, valuing Mr Tinkler's 19.4 per cent stake at just $454 million, while Yancoal shares were at 84.5¢.
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The $28.4 million placement to Mulsanne failed amid broader financing and corporate complications, leading to the wind-up issue at the court hearing. The placement — priced at a roughly 50% premium to Blackwood's then share price — unraveled as wider plans to grow Blackwood ran into financing difficulties when coal markets turned adverse in the second half of 2012.
Nathan Tinkler told the court the placement was only the start of a bigger plan to transform Blackwood into a substantial company. The strategy, backed by Noble Group, included combining Tinkler Group's greenfields development expertise with Noble's commodity marketing skills and pursuing major acquisitions such as a proposed $400 million purchase of underperforming Australian coal assets from Vale.
The plan involved Nathan Tinkler's interests and Noble Group, and could have included listed junior Guildford Coal. It referenced the $400 million acquisition of underperforming Australian coal assets from Vale and followed earlier moves such as the April merger of Aston Resources and Boardwalk Resources with listed Whitehaven Coal.
When coal markets weakened in the second half of 2012, coal stocks fell and it became much harder to raise finance. That market shift caused Noble to reassess valuations, reduced willingness from potential financiers, and ultimately helped derail the proposed roll-up and acquisition plans tied to Blackwood.
By late in the year Noble, described by Mr Tinkler as a 'company under stress', returned with an offer in October valuing the Middlemount royalty at about half the previously discussed level. That offer was rejected, and alternatives were explored with potential financers approached, including hedge fund Och-Ziff and investment bank Barclays.
The article reports Whitehaven shares fell to a fresh low of $2.31, valuing Nathan Tinkler's 19.4% stake at about $454 million. Yancoal shares were trading at 84.5 cents — valuations that were materially lower than earlier expectations cited during the proposed deals.
Noble Group was a key strategic backer: the plan was to pair Tinkler Group's greenfields development capabilities with Noble's commodity marketing expertise. Noble was also involved in the proposed asset transactions and valuation discussions, including an attempted restructuring that later stalled as market conditions worsened.
The case highlights how market conditions and commodity cycles can derail even well‑publicised corporate growth plans. For everyday investors, it shows the importance of monitoring sector-wide price trends (like coal prices), understanding reliance on large placements and third‑party backers, and being aware that valuations and financing terms can change quickly when markets turn.
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