The coal company announced it had entered a trading halt for a period of seven days while the entitlement is settled.

Earlier this month the company was targeted for take-over by New Hope Corporation as it was finalising plans to restructure its finances and expand beyond its single mine portfolio.

Resource Pacific directors have not backed the takeover bid and have persisted in the entitlement offer and urged its shareholders to support the initiative.

The 4-for-9 accelerated renounceable entitlement offer is fully underwritten and offers the shares at an 18% discount rate of $A1.60.

Resource Pacific managing director Paul Jury said the funds raised would be used to repay project finance debt and acquire assets to boost operations.

The takeover panel yesterday announced it had declined to commence proceedings on New Hope’s application after concerns that shareholders would not have adequate disclosure of the offer’s terms and to allow New Hope to reconsider its offer after the entitlement offer is settled.