Macarthur recommends new takeover offer

Finance

Coal trucks operating at Macarthur Coal Ltd.'s Coppabella Mine southwest of Mackay in Queensland, Australia. Photo: Bloomberg

Publishing Date: 30 Aug 2011 12:59pm GMT
Author: Mining Journal

The board of directors at Australian producer Macarthur Coal Ltd has backed an improved takeover offer made for the company by Peabody Energy Corp and ArcelorMittal SA.

Peabody and ArcelorMittal, operating together on the deal as PEAMCoal, are now offering A$16/share for Macarthur, up from the A$15.50/share bid made earlier this month.

The deal represents a 48% premium to the one-month volume weighted average price of A$10.82/share prior to July 11, Macarthur said.

The company said it “now recommends” the revised offer “in the absence of a superior bid”.

“The directors note, that in the period since the initial offer a number of parties have conducted due diligence in relation to Macarthur. Although it remains possible that a superior proposal might be made, none have emerged to date and there can be no assurances that any will emerge.”

Macarthur and PEAMCoal have entered into an implementation deed which includes a 'no shop' and 'no talk' restrictions, as well as a right for PEAMCoal to match a competing proposal the Australia company’s board considers superior.