ATW Mining Announce Discussions With Singapore Hedge Fund Over Potential Sale of the Mining Firm
ATW Mining, an Australian mineral exploration and mining company, has announced today they are holding discussions with a leading Singapore hedge fund over a potential sale of the company.
Perth, Australia, January 29, 2016 (Newswire.com) - The hedge fund is reportedly looking to make an aggressive move to acquire ATW Mining; however after more than 10 years of hard work and dedication the directors of the firm are considering taking the company to market themselves.
In a statement released earlier today, ATW said the discussions were "preliminary" and were in relation to "a potential acquisition" of the Australian exploration firm.
"ATW Mining has an obligation to our shareholders to consider all options to maximise revenue and improve our competitive edge." the statement said.
It did go on to state however, that "there is no assertion that any such deliberations will result in a conclusive agreement or transaction, or that any offer for ATW will be accepted".
A controlling stake in ATW Mining is thought to be valued in excess of US $850m, according to those with knowledge of the talks. The Perth-based exploration firm’s esteemed valuation is due to recent findings in two more key locations in Australia, giving the company potentially massive upside growth opportunities.
Due to the firm’s recent streamlining and cost cutting exercises the company’s total overheads have been lowered, equating to greater profits. With this latest discovery, the future of ATW Mining looks extremely lucrative.
The hedge fund have remained somewhat more reticent on the matter, simply stating "after considering a series of valuation reports on a company in the mining sector, we have initiated talks that may or may not lead to some form of collaborative effort to realise the potential of the company and its assets. At this time we cannot rule out any options, nor can we confirm that any actions will be taken."
A further statement by a managerial member of the fund declared "We are very much aware of the current status of the industry and are remaining cautious in our assessments. One thing that we can state is that, even during a slump in the industry, there are a handful of companies that have managed to restructure and maintain profitability, and fewer still that have managed to increase profitability. When the market returns to normal, these are the companies that will emerge with renewed potential for domination."
At the time of writing we are unable to disclose any details of the hedge fund or of the rumoured deals that may be on the table. Once talks have reached a more fruitful stage, we expect to hear more on the subject.