Australian miner Rio Tinto and Japan's Mitsubishi Corp. raised the initial offer they have made to buy out the minority shareholders of Australia's Coal & Allied Industries Limited. Accordingly, Coal & Allied shareholders will receive cash consideration of A$125 per share, an A$3 increase as compared to consideration of A$122 per share announced on August 8, 2011.
Coal & Allied board recommends that the shareholders should vote in favor of the improved offer which is subject to an independent review.
If the companies go through with the takeover process, they plan to split the ownership of Coal & Allied increasing Rio Tinto shares from 75.7 percent to 80 percent and Mitsubishi Development shares from 10.2 percent to 20 percent.