Australia's largest independent coal company will be created shortly when the final stage of the friendly takeover of Aston Resources by Whitehaven Coal is completed.

Aston shareholders yesterday said 'yes' to the $5.1 billion takeover by Whitehaven Coal at a meeting in Brisbane.

Newcastle billionaire Nathan Tinkler holds a 32% stake in Aston, which the takeover values at about $720 million.

Shareholders also approved Whitehaven's acquisition of Mr Tinkler's unlisted company Boardwalk Resources.

That part of the deal will see Boardwalk investors receive Whitehaven shares worth approximately $720 million.

The transaction remains subject to approval of the Federal Court of Australia at a hearing tomorrow.

All being well, implementation of the scheme of arrangement will happen on May 2.

The takeover combines Whitehaven's five open cut mines and Aston's 85% undeveloped Maules Creek project, all in the Gunnedah Basin of NSW (northwest of Newcastle).

Whitehaven also has an 11% interest in the Newcastle Coal Infrastructure Group, which operates the Port of Newcastle's second dedicated coal terminal.

Aston deputy chairman Mark Vaile told the meeting that the transaction brought together two highly complementary and growth-focused groups.

Whitehaven managing director Tony Haggarty said the tie-up created an entity with a greater ability to attract top-shelf staff, pursue growth opportunities and develop its pipeline of assets.

Another part of the deal will see Whitehaven buy Boardwalk Resources.

Whitehaven's acquisition of Boardwalk, which is an unlisted public company, is conditional on the Aston takeover proceeding.

Boardwalk owns the Ferndale coal project in NSW and three others in Queensland.

Boardwalk is also the biggest shareholder in listed coal explorer Coalworks Ltd with a 17.3% stake.

Whitehaven chairman John Conde told the meeting that the Boardwalk transaction represented "an important milestone in the continued growth of the Whitehaven group".

Boardwalk's assets are located in established coal mining areas, with well-understood geology in proven coal basins.

All of the Boardwalk exploration assets are located near established mines or coalmining development projects and existing rail infrastructure.

Mr Conde said he was confident the portfolio of assets would provide the expanded Whitehaven group with future development options and a platform for growth.

Shares in Whitehaven were up 1c at $6.01 while Aston shares rose 2c to $10.25.

And shares in Linc Energy jumped sharply yesterday after it announced it had formed a joint venture to produce gas in China.

It will partner with a subsidiary of Hong Kong-listed Golden Concord Holdings (GCL) to commercialise fuel using Linc's technology in China.

Brisbane-based Linc is focused on producing underground coal gasification (UGC) and gas-to-liquids (GTL) technologies.

"China's insatiable appetite for liquid fuels and gas presents Linc Energy and GCL with a unique opportunity to capitalise on this world changing market," Linc chief executive Peter Bond said in a statement.

As part of the deal, GCL will also take a 5% interest in Linc for $120 million.

Linc shares rose by as much as 37% at one stage and ended the day up 19.5% or 20.7c at $1.277.

Linc will own 33% of the joint venture, and GCL the remaining stake.

"Linc Energy is committed to commercialising UCG to GTL on a significant scale, and this most recent deal with GCL in China is the first stepping stone of many commercial opportunities I believe you will see Linc Energy produce over the months ahead," Mr Bond said.

The completion of the deal needs approval from the Foreign Investment Review Board.

Copyright Australasian Investment Review.
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