Australia’s Whitehaven Coal was placed in a trading halt on Wednesday after major shareholder Nathan Tinkler reportedly threatened to oust directors without an urgent financial update.
Whitehaven, formerly a takeover target of Tinkler’s, requested a freeze on its shares until Friday “pending the release of an announcement” the Australian Securities Exchange said.
It follows reports that Singapore-based mining magnate Tinkler, one of Australia’s richest young entrepreneurs, had written to the firm’s chairman Mark Vaile this week demanding a detailed update on operational and financial matters.
Tinkler is Whitehaven’s single largest shareholder, with a 19.4 per cent stake, and reports said the self-made coal baron had threatened to vote against the re-election of five directors if his demands were not met.
A spokesman for Tinkler, 36, who owns the Newcastle Jets football team and Newcastle Knights rugby league club, told AFP he had no comment on reports that said Whitehaven had been given until close of business Thursday to respond.
Tinkler pulled out of a A$5.3 billion (US$5.4 billion) Whitehaven takeover in August and its shares have since plunged seven per cent, reducing the value of his stake against which he is reported to have leveraged loans.
