It hasn't been a great start to the trading week thus far for ASX shares. At the time of writing, the S&P/ASX All Ordinaries Index (ASX: XAO) has slipped by 0.8% to back around 7,300 points. But we can't say the same for one little-known ASX coal share.
In stark contrast to the All Ords, the Australian Pacific Coal Ltd (ASX: AQC) share price is on fire today. This coal share closed at 14 cents a share last week, but opened at 26 cents this morning, before dropping to the present price of 25 cents a share, up a pleasing 85.2%.
However, earlier this morning, the company touched 27 cents a share. That was a whopping 100% rise on last week's close at the time.
So what on earth is going on with Australian Pacific Coal that would elicit such a dramatic jump in valuation?
Image source: Getty Images
Why did this ASX coal share double in value today?
Well, it seems that an ASX announcement from Australian Pacific Coal this morning is responsible.
This morning, the company announced that it had received a "non–binding alternative proposal" for the sale of its Dartbrook Project from Nakevo Pty Ltd. Previously, the company had received an offer for Dartbrook from major shareholder and creditor Trepang Services Pty Ltd.
Nakevo, a private company backed by former coal magnate Nathan Tinkler, proposes to provide "immediate funding to AQC by way of an equity subscription for 19.97% of the shares in AQC at $0.30 per share for a total of $3.78 million (less fees and expenses)."
Nakevo is also proposing to make a takeover bid for Australian Pacific Coal "for up to $0.30 per share, to allow existing shareholders to take the opportunity to liquidate their investment, should they wish to do so".
Australian Pacific Coal has stated that "the Proposal is at an early stage, is conditional and requires further consideration. Shareholders are advised to take no action at this time."
However, investors certainly seem very excited by this latest development, considering what the Australian Pacific Coal share price has done today. No doubt this is a space well worth watching going forward.
At the current Australian Pacific Coal share price, this ASX coal share has a market capitalisation of $6.81 million.
