Peabody Energy and ArcelorMittal announced that PEAMCoal has agreed to terms with the Macarthur board for a cash takeover of all outstanding shares of Macarthur Coal for AUD 16 per share, valuing the equity in Macarthur at approximately AUD 4.8 billion and all participating members of the Macarthur Board recommend that Macarthur shareholders accept the new PEAMCoal offer.
Mr Gregory H Boyce chairman & CEO of Peabody Energy said “This is a major step forward in our acquisition process. We are pleased to have Macarthur, Peabody and ArcelorMittal moving forward together to urge shareholders to accept this attractive premium. We now look forward to completing this transaction in a timely manner.”
Mr Aditya Mittal CFO and Member of the Group Management Board at ArcelorMittal said "Our offer is the only offer before Macarthur shareholders, and we urge them to accept without delay and receive a substantial premium for their investment."
PEAMCoal and Macarthur have entered into an implementation deed, which is available on PeabodyEnergy.com. The improved offer is subject to limited conditions as set out in section 11.7 of PEAMCoal's replacement bidder's statement dated 15 August 2011, including minimum 50.01% acceptances and final regulatory clearance or expiry of the relevant waiting period.
The price to be received by Macarthur shareholders of AUD16 per share represents a substantial premium of
1. 44% to AUD 11.08 per share, the closing price on July 11, the day Peabody and ArcelorMittal's initial approach was disclosed to the market
2. 48% to AUD 10.82 per share, the one-month volume-weighted average price (VWAP) to July 11
3. 41% to AUD 11.32 per share, the three month VWAP to July 11
4. 33% to AUD 12.02 per share, the twelve-month VWAP to July 11
Macarthur Coal is a leading producer of low volatile PCI metallurgical coal with production and development assets in the Bowen Basin, Australia, including the Coppabella and Moorvale Joint Venture, Middlemount and Codrilla. It holds total coal reserves of 270 million tonnes and total resources of approximately 2.3 billion tonnes.