Monday 28th May, 2018

Wesfarmers looking to sell Bengalla stake

Coal. Photo: Shutterstock
Photo: Shutterstock

Wesfarmers is reportedly looking to sell it’s 40% stake in the Bengalla coal mine in New South Wales, in a move which would see it complete its exit from the coal sector.

According to AFR’s Street Talk column this week, UBS has been calling potential buyers over the past week to try and drum up interest in Wesfarmers’ share in Bengalla.

New Hope Coal bought 40% of Bengalla from Rio Tinto in 2015, and has since enjoyed the success of its bottom-of-the-market acquisition, as coal prices have rebounded and remained strong.

New Hope was understandably thought to be the odds-on favourite to buy Wesfarmers’ stake, with the group conducting a coal exit, but the report would suggest Wesfarmers thinks an outside party could make a better offer.

The remaining 20% of Bengalla is owned by Mitsui and Taipower, who each own 10%.