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WARSAW, Nov 7 (Reuters) - Poland’s JSW is interested in taking over Australia’s Prairie Mining, Chief Executive Daniel Ozon confirmed on Wednesday.
Sources told Reuters in September that JSW, the European Union’s biggest coking coal miner, wanted a controlling stake in Prairie Mining.
“We are now working on internal approvals so that we could start a final stage of talks. We would like to build such a structure that we take control over Prairie Mining,” Ozon told reporters.
Nice find!
JSW’s investment plans in the Lublin Coalfield - (English translation of JSW press release)
https://www.jsw.pl/en/investors-relations/press-releases/press-releases/?tx_news_pi1%5Bnews%5D=2051&tx_news_pi1%5Bcontroller%5D=News&tx_news_pi1%5Baction%5D=detail&cHash=8197bb221de7e351ba01804c3c557bb3
JSW is looking for support from Prime Minister Morawiecki
There are several articles in Polish, on the internet, regarding a meeting held in Chelm, Poland (Chem is the nearest city to the Jan Karski mine). At the invitation of the Law and Justice party Daniel Orzon (of JSW) presented his plans for the Jan Karski mine. Orzon needs the support of the Prime Minister Mateusz Morawiecki (also of Law and Justice) to support his plans for Jan Karski and also to avoid being replaced as JSW president. It is suggested that the Law and Justice party wants to signal their support for a project that will create 2,300 jobs in the area.
https://www.parkiet.com/Surowce-i-paliwa/310299940-JSW-szuka-wsparcia-u-premiera-Morawieckiego.html
Lots going on in the background, hopefully we'll get a (decent) 'deal' soon, before Christmas would be a nice present!
Joint Update Statement Regarding Possible Co-Operation between Prairie Mining and JSW
The Bloomberg writer seems confused about the difference between thermal and met coal. Prairie's projects are not for power generating coal. Still - good to get a positive quote from the Ministry.
EU's Biggest Coal-Mining Nation Plans Output Hike to Cut Imports
“Prairie should be a partner for JSW or Bogdanka — not the enemy,” - The Deputy Energy Minister Grzegorz Tobiszowski said on Thursday
https://www.bloomberg.com/news/articles/2018-10-05/eu-s-biggest-coal-mining-nation-plans-output-hike-to-cut-imports
http://www.mining.com/web/eus-biggest-coal-mining-nation-plans-output-hike-cut-imports/
...back to sleep for this share ...!
logic would suggest a deal will be done. It not only achieves Polish government objective of nationalising what they see as important assets (as KF mentions below), it also puts to bed the issue of being taken to court by PDZ. I just hope any 'agreed' price is fair to shareholders!
UncleJohn sounds correct. It depends on the level of management discretion. Might be seeking approval contingent on valuation or may provide approval up to some confidential valuation figure to allow for final negotiation. I don't know enough about the Polish process to be sure. But overall it sounds like good progress. Also - Poland in general is looking to bring national assets back 'in-house' so that supports an approval in my mind. Big question mark still over the valuation.
This article certainly implies that a deal has been done subject to Energy Ministry approval. There would be little point getting approval unless a deal had been done, because the Energy Ministry for sure would then want to know the terms of the deal and given that they have been talking for months this also implies that an agreed deal is ready subject only to the Energy Ministry.
Someone confident who bought 70,000 @ 30.839
KATOWICE, Poland (Reuters) - Poland’s state-run JSW (JSW.WA) is awaiting approval from the Energy Ministry in its bid to acquire the Polish mining assets of Australia’s Prairie Mining (PDZ.AX), JSW said on Wednesday.
https://uk.reuters.com/article/us-prairie-mining-m-a-jsw/polands-jsw-seeks-ministry-approval-to-buy-prairie-mining-assets-ceo-idUKKCN1LZ134
Should have put in JSW
Another article allegedly from Reuters saying that they wish to take over Prairie but in there opinion it was more likely to be October than September. Taken from a posting on Hot Copper
This didn't happen 'yet' but the rumour hasn't gone away
So the sp dropped 10p per share on a rumour that the ceo of jsw would be fired! This didn’t happen! So can we have our 10p back please?
WARSAW, Sept 13 (Reuters) - The chief executive at Poland’s coking coal miner JSW will keep his job for now, as the supervisory board meeting that was expected to result in his dismissal on Thursday was cancelled, two company sources said.
On Monday a source said that the energy ministry, which supervises JSW, might fire CEO Daniel Ozon on Thursday following disagreements over strategy.
I don't have a view on where this deal comes out in PLN/AUD terms.
Both parties have a strong incentive to get it done: the assets work for JSW and are worth more for them than someone else due to the proximity of Debiensko. For PDZ, I think they would prefer a deal than taking these assets through development themselves. The key decision makers at PDZ all have skin in the game so I think will do their best for shareholders.
The wild card, as seen this week, is the political situation. My gut feel says a deal gets done this time but the valuation is the part I can't figure out. Too many qualitative variables. I hold, but have seen to many ups and downs in this one over the years to try and predict the final $ outcome.
Sorry for duplication 99icecream, that's plagiarism for ya
Looks very similar to the Reuters article from September 6.
https://uk.reuters.com/article/uk-poland-jsw-coking-coal/polands-jsw-seeks-tighter-grip-on-coking-coal-with-possible-prairie-bid-sources-idUKKCN1LM1VX?il=0
Found this news which was released yesterday. Strange that it's not quoting the sacking of JSW CEO?
https://www.tvn24.pl/tvn24-news-in-english,157,m/poland-s-jsw-seeks-tighter-grip-on-coking-coal-with-possible-prairie-bid,867672.html