Travers Duncan and Brian Flannery, the chairman and chief executive of coal mining company Felix Resources, are set to pocket more than $500 million each as Chinese mining company Yanzhou Coal prepares to launch a formal takeover bid for Felix.
The pair, who are already members of BRW’s Rich 200, have watched the value of their stakes in Felix soar this year and takeover speculation has swirled around the company.
At the start of December 2008, Felix’s shares were trading at $4.88 and Duncan and Flannery’s shareholdings were worth around $143 million each. But with Yanzhou set to pay at least $18 a share for Felix, the pair are set to take around $530 million off the table.
If the price ends up being higher – figures of $20-$24 a share have been mentioned in reports – then Duncan and Flannery’s combined earnings from the deal could be as much as $1.3 billion.
They are not the only Felix investors looking forward to a big pay day.
The company’s biggest shareholder, coal investor Hans Mende, will pocket at least $678 million from the deal, while the company’s former marketing manager Joseph Butta would take away around $175 million.
Another investor, former QC Frank McAlary, will also pocket around $175 million if the deal goes through.
Felix Resources shares remain suspended as negotiations continue between the board and Yanzhou.
But once a price is sorted out, the deal is almost certain to go ahead given Duncan, Flannery and Mende control almost 50% of the company’s shares.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
