Macarthur scraps CITIC deal

Finance

Publishing Date: 27 Jul 2010 11:11am GMT
Author: Mining Journal

Australia’s Macarthur Coal has terminated a A$110 million (US$99.3 million) deal with China's CITIC Group that would have seen it acquire a larger interest in the Coppabella and Moorvale joint venture in Queensland.

In December, Macarthur announced that it would acquire CITIC’s share in the joint venture in exchange for 11.3 million Macarthur shares worth A$9.70 each.

The companies agreed to terminate the deal on the basis that waivers of pre-emptive rights from all minority participants have not been forthcoming.

Macarthur chief executive Nicole Hollows said: “the rationale for the CITIC transaction remains sounds and is in line with the future growth direction and vision of the company to be Australia’s leading independent coal company. Macarthur is committed to review and assess similar opportunities should they arise in the future.”

Termination of the transaction means that Macarthur’s interest in the Coppabella and Moorvale joint venture remains at 73.3%.