NATHAN Tinkler’s decision to fold the Newcastle United Jets may be based on money, but it is unlikely to be a case of the billionaire being strapped for cash.
The Newcastle Jets and Knights owner has an impending multibillion-dollar coal merger that will net him a handsome cash boost.
Tinkler, who is overseas, is a major shareholder in Aston Resources, which is on the verge of a lucrative takeover bid from Whitehaven Coal.
Aston directors, including independent directors, have unanimously recommended its shareholders vote in favour of the takeover.
Whitehaven directors have recommended the same to their shareholders, and a meeting is scheduled for Monday in Brisbane.
One of Tinkler’s private companies, Boardwalk Resources, which has a 19.9per cent stake in Coalworks, is also part of the takeover.
The merged entity has been valued at $5.1billion and Tinkler would have a 19per cent stake worth $969million in that company.
Last financial year, Whitehaven recorded a net profit after tax of $73million and the company has forecast a $92million profit for this financial year.
Whitehaven Coal is a coalmining and exploration company with activities in the Gunnedah Basin where Aston’s only major asset, the Maules Creek proposal, is based.
Tinkler also owns the Patinack Farm horse breeding and racing operation, and sold a colt and two fillies totalling $360,000 at the Inglis Easter Yearling Sale in Sydney yesterday.
Tinkler’s Hunter Sports Group paid Football Federation Australia $5million for Newcastle United’s A-League licence in September 2010 when former owner Con Constantine experienced financial problems.