Macarthur extends deadline for Gloucester deal

Wednesday, 05 May 2010 16:19:25 (GMT+2)

Australia-based low-volatile metallurgical coal producer Macarthur Coal Limited has extended the deadline for its $1.21 billion acquisition deal for Gloucester Coal Ltd to May 27. The previous deadline was May 13. Macarthur informed the Australian Securities and Investments Commission and Gloucester Coal regarding the extension on May 5.

The decision came amid uncertainty about whether the US coal giant Peabody's separate offer to takeover Macarthur will go ahead.

As SteelOrbis previously reported, following due diligence for its acquisition offer, Peabody advised Macarthur that Australia's new mining tax legislation proposal, which would place a new tax burden on the country's mining sector, had to be factored into its decision.

Macarthur Coal Limited had announced on February 26 that its board confirmed a bid to takeover New South Wales-based Gloucester, which operates mines in the Hunter Valley and is largely owned by Hong Kong-based Noble Group. Noble Group's shareholders on April 19 did not approve the sale of the company's stake in Australian miner Gloucester Coal to Macarthur, after which the deal was off. The coal producer is offering Gloucester shareholders 0.84 Macarthur shares for every one Gloucester share held or AU$8 a share.

Meanwhile, Peabody revealed a sweetened third offer on April 15 to takeover Macarthur for AU$16 per share or a total of AU$4.1 billion (US$3.8 billion), which was finally considered by Macarthur.

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