Shares in Coal miner New Hope Corporation (ASX:NHC) climbed to record highs on Wednesday, after the company revealed it plans to start a formal process to evaluate takeover offers.
The company said in a statement that it has received a number of preliminary, incomplete proposals from interested parties.
Chairman Robert Milllner said the board feels the time is right to determine whether a bid at the right price is available.
He said a formal process “will allow the board to assess [merger offers] with minimal disruption to New Hope's day-to-day activities.”
But in a possible indication that the board is in no hurry to sell, Millner stated that directors are confident the company can continue to grow alone if a suitable offer is not put forward.
“The board believes that New Hope has a unique set of assets with significant strategic value,” he said.
The evaluation process is expected to take several months. New Hope has appointed Pitt Capital Partners as financial advisers and Baker & McKenzie to weigh in on legal issues.
NHC shares grew 15.31% on Wednesday to $6.100.