Leading low-volatile metallurgical coal producer Australia-based Macarthur Coal announced on April 9 that it has rejected an acquisition proposal from Australian coal producer New Hope Corporation Limited.
New Hope, which has a market capitalization of 4.4 billion Australian dollars (US$4.8 billion), offered 2.7 of its shares for each Macarthur share. The deal values Macarthur shares at A$14.58 each, for a total bid of A$3.71 billion (US$3.35 billion).
The New Hope proposal stipulated that Macarthur's takeover bid for Gloucester should proceed no further.
As SteelOrbis previously reported, 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. The coal producer is offering Gloucester shareholders 0.84 Macarthur shares for every one Gloucester share held or AU$8 a share. Gloucester has recommended shareholders accept Macarthur's offer.
The Macarthur directors, assessing the merits of New Hope's Proposal, rejected it, stating that the company will go ahead with a planned shareholder meeting to vote on the Gloucester deal. Some news sources reported that the meeting is postponed from April 12 to April 19.
As SteelOrbis previously reported, the board had advised that its shareholders take no action in regard to a revised AU$3.6 billion (US$3.27 billion) worth proposal from St. Louis, US-based Peabody Energy, the world's largest private sector coal company.