Thailand's Banpu (BAK:BANPU) Acquires Centennial (ASX:CEY) Stake

Sydney, May 7, 2010 AEST (ABN Newswire) - Centennial Coal (ASX:CEY) Thursday revealed that Thailand's Banpu Public Company Limited (BAK:BANPU) has acquired a long term strategic stake of 14.9 per cent in the Australian coal miner, amid worries that the new resources tax might cool takeover activities in mining sector.

Centennial shares jumped 25 per cent after it noted the special crossings of 39.48 million shares Thursday morning at A$5 per share, representing 10 per cent of Centennial shares. But Centennial said it was unaware of the identity of the buyer.

The statement came after media reports that a foreign buyer has taken a 10 per cent stake in Centennial Coal after a large trade of shares in the company at a substantial premium. It was speculated China's Shenhua Group may have been behind the buy-up of Centennial and JP Morgan was on behalf of the buyer to acquire the stake. It was said that the buyer plans to seek approval to go to 19.9 percent, the threshold for making a full takeover offer.

Centennial Coal finally noted that Thailand coal operator Banpu has emerged as the mystery buyer of its shares.

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Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net