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Enterprise enters coal industry for $235m

ENTERPRISE Energy is poised to become a coal player after announcing its intention to acquire pri...

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In an announcement yesterday Enterprise said it had signed a heads of agreement with Bandanna Coal, to acquire the legal and beneficial right to all issued shares in Bandanna, for a consideration of $A235 million.

Enterprise said consideration for the proposed transaction would be by the issue of 2.037 billion ordinary shares in Enterprise, about 94% of the issued capital of Enterprise prior to any new capital raised.

Bandanna Coal currently holds 11 exploration permits for coal, along with applications for a further five.

Key terms of the proposed transaction contained in the heads of agreement include Enterprise embarking on a $40 million capital raising, and three nominees of Bandanna to be invited to seek shareholder approval for appointment as directors to the board of Enterprise.

If the proposed transaction proceeds, any actions relating to investment in or realisation of Enterprise's existing conventional oil and gas interests will be taken after consideration of their impact on Enterprise as a whole.

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