Coal Magnate Tinkler Moves From Australia to Singapore
Nathan Tinkler, the Australian entrepreneur who last year helped orchestrate the sale of his mining assets for about A$2.6 billion ($2.6 billion) in stock, has moved his primary residence to Singapore.
The move will help relationships between 36-year-old Tinkler, the largest shareholder in Whitehaven Coal Ltd., and customers and investors in Asia, Tim Allerton, an external spokesman at City Public Relations in Sydney, said by phone.
“His investors, financiers and customers are all up in Asia and he feels the need to be closer to them,” Allerton said. The main office of his Tinkler Group would remain in Brisbane, and Allerton said he “wouldn’t have a clue” whether tax considerations played a part in the decision.
Eduardo Saverin, the co-founder of Facebook Inc. (FB), renounced his U.S. citizenship ahead of the company’s initial stock sale last month with the same justification of staying close to Asian markets. The move will save Saverin at least $67 million in U.S. capital gains taxes, according to an analysis by Bloomberg News.
Singapore doesn’t impose a tax on capital gains from asset sales and its top rate of income tax is 20 percent. In Australia, the top rate of income tax is 45 percent and capital gains are taxed as part of income.
Tinkler, a former electrician, made the decision a couple of months ago, Allerton said. He will spend about half his time overseas and his family will move to Singapore as well, he said. The relocation was reported in the Sydney Morning Herald June 9.
Tinkler sold his house in 2006 to buy the A$30 million lease on the Middlemount coal mine in Queensland state before selling it to Macarthur Coal Ltd. for about A$465 million in cash and shares a year later.
He reaped a profit of about A$445 million selling his stake in Macarthur to the world’s largest steelmaker, ArcelorMittal, and in August 2010 bought the Maules Creek mine from Rio Tinto Group for A$480 million.
That formed the basis of his listed Aston Resources Ltd. vehicle, which was sold to Whitehaven Coal Ltd. (WHC) last December for A$2.6 billion in stock.
Tinkler and his companies also own coal and metals mining projects, infrastructure investments, a horse-breeding operation, and the Newcastle Knights, a rugby league team in the Australian coal port of Newcastle.
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