Polo Resources Suddenly Centre Of Attention

It was a big week for Alternative Investment Market (AIM)-listed UK coal miner Polo Resources, which said on January 27 that Peabody Energy, the world's largest private sector coal producer, had agreed to acquire up to a 50% stake in a joint venture (JV) formed to hold its Mongolian coal and mineral interests. The news came just one day after Polo shares had surged by 46% following news of an unsolicited and highly conditional offer from energy- and commodity-focused private equity (PE) firm Denham Capital Management. Peabody will pay US$73.2mn in cash if all options are exercised, as well as warrants to buy up to 15 percent shares in Polo. Polo shares were up 25% at GBp3.60 (US$0.50) in early morning trade, having earlier reached a high of GBp3.87.

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