St Louis, US-based coal giant Peabody Energy announced on May 10 that it has submitted a definitive proposal to acquire all interests of Australia-based low-volatile metallurgical coal producer Macarthur Coal Limited, according to which Macarthur shareholders would receive a cash price of AU$15 per share, valuing Macarthur at AU$3.8 billion (US$3.4 billion) under a scheme of arrangement.
The proposed amount is lower than Peabody's proposal dated April 15 before its due diligence on Macarthur in the beginning of May. The proposed amount then was AU$16 per share or a total of AU$4.1 billion.
Macarthur advised its shareholders to take no action until the Macarthur board makes its official recommendation.
Under Peabody's new proposal, Peabody continues to be willing to provide any or all of Macarthur's three major shareholders the opportunity to retain their economic interest in Macarthur should they choose to do so.