Macarthur Coal agrees due diligence basis with Peabody and ArcelorMittal

Saturday, 16 Jul 2011

Macarthur Coal has put out the welcome mat to Peabody Energy Corporation and ArcelorMittal SA and agreed a basis for due diligence terms with BidCo.

As part of this agreement, BidCo has agreed that in the event that BidCo makes an offer at any time in the next 12 months:

1. The offer price will be no less than AUD 15.50 per share unless the Macarthur Board expressly consents otherwise or there is a competing offer

2. Up to AUD 0.16 per share of any final dividend for FY2011 declared by the Macarthur Board will not be deducted from the offer price

3. Offer conditions would be no more onerous than the offer conditions outlined.

Macarthur has already advised shareholders that the indicative proposal is not a binding offer, is not capable of acceptance and the board makes no recommendation in relation to the proposal.

The indicative proposal is subject to a number of conditions, including Foreign Investment Review Board approval, satisfactory due diligence investigations and the bid company achieving a relevant interest in at least 50.01% of Macarthur ordinary shares.

(sourced from proactiveinvestors)