Both the companies have entered into a scheme implementation agreement pursuant to which they have agreed to merge to create an independent Australian coal company.
Aston shareholders will receive 1.89 Whitehaven shares for each Aston share they hold while Whitehaven will pay a special dividend of $0.50 per share to its shareholders before implementation of the merger.
The transaction, secured the support of both Aston’s and Whitehaven’s boards
Whitehaven will receive Aston’s 75% stake in the Maules Creek project located in New South Wales.
The project will help the production from six million tonnes a year in 2012 to 25 million tonnes a year by 2016.
Whitehaven has also agreed to buy Boardwalk Resources and has offered 85.88 million Whitehaven shares. Whitehaven has offered up to 34 million more shares if Boardwalk wins mining leases on two projects.
