Tuesday, 07 Feb 2012
Australian mining company Zyl, which last year attracted takeover interest said six companies have approached it about securing more than 600,000 tonnes a year of coking coal from its planned Mbila mine in South Africa.
Zyl said that the expressions of interest, including one from an unnamed international mining company, cover the full production expected by the company in the first phase of the mine’s development.
The Perth-based company said it was seeking to formalise the interest and would update the market in due course.
Zyl has previously said it expects to begin production at the mine, located in KwaZulu-Natal province, in the second quarter of 2013, and to reach full production of 840,000 tonnes a year by the second quarter of 2014. It has estimated Mbila has resources of almost 125 million tonnes, not including land where the company holds a prospecting right.
Zyl in December 2011 appointed Macquarie Capital as an adviser after it was approached by two unnamed parties interested in either a partnership or takeover.
(soured TheAustralian.com.au)
Showing posts with label takeover. Show all posts
Showing posts with label takeover. Show all posts
Tuesday, February 7, 2012
Thursday, January 26, 2012
Peabody hires UBS to sell Wilkie Creek mine
Thursday, 26 Jan 2012
US coal giant Peabody Energy has moved to capitalize on red hot demand for producing Australian coal mines, hiring UBS to find a buyer for its Wilkie Creek mine in Queensland state.
The mine, which produces over 2 million tons of thermal coal a year in the Surat Basin, is likely to interest North Asian buyers who already account for nearly all its exports.
Peabody acquired Wilkie Creek a decade ago, but sees it as non-core following its AUD 4.9 billion (USD 5.1 billion) takeover of Macarthur Coal last year. Macarthur’s mines are clustered in the Bowen Basin, so selling Wilkie Creek would allow Peabody to concentrate on its operations there.
The decision to sell Wilkie Creek, which has a resource of over 500,000 tons of thermal coal for use in power stations, was disclosed by Peabody in its full year earnings announcement Tuesday.
(Sourced from Wall Street Journal)
US coal giant Peabody Energy has moved to capitalize on red hot demand for producing Australian coal mines, hiring UBS to find a buyer for its Wilkie Creek mine in Queensland state.
The mine, which produces over 2 million tons of thermal coal a year in the Surat Basin, is likely to interest North Asian buyers who already account for nearly all its exports.
Peabody acquired Wilkie Creek a decade ago, but sees it as non-core following its AUD 4.9 billion (USD 5.1 billion) takeover of Macarthur Coal last year. Macarthur’s mines are clustered in the Bowen Basin, so selling Wilkie Creek would allow Peabody to concentrate on its operations there.
The decision to sell Wilkie Creek, which has a resource of over 500,000 tons of thermal coal for use in power stations, was disclosed by Peabody in its full year earnings announcement Tuesday.
(Sourced from Wall Street Journal)
Thursday, December 22, 2011
China's Yanzhou inks A$700 mln deal for Gloucester Coal
Thu Dec 22, 2011
* Yanzhou says to merge Australian unit with Gloucester Coal
* Deal worth A$700 million in cash, or A$3.20 per share - Yancoal
* Reverse takeover creates one of largest coal companies in Australia
SYDNEY/HONG KONG, Dec 22 (Reuters) - China's Yanzhou Coal Mining Co Ltd said on Thursday it plans to merge its Australian unit with Gloucester Coal in a A$700 million deal that will create one of Australia's largest listed coal companies.
Australia's coal sector has seen a series of mergers and acquisitions initiated by Asian suitors hungry to satisfy fast growing domestic demand for coal from steel mills and power generation plants.
Yanzhou Coal's deal for Gloucester is also yet another case of a Chinese company buying up natural resource assets in Australia, tapping its commodity base to fuel massive residential, commercial and infrastructure projects across China.
Sydney-based Gloucester will be merged with Yancoal Australia Ltd., and Yanzhou will own 77 percent of the new company. Gloucester shareholders will own the rest and receive A$700 million ($705.36 million) in cash, the equivalent of A$3.20 in per share, Yancoal said in a statement. Each Gloucester Coal shareholder will receive one share in the merged company.
Gloucester closed at A$7.03 in Sydney on Dec. 19, before trading in the shares was suspended.
The reverse takeover of Gloucester would give Yanzhou Coal's Australian unit, Yancoal Australia Ltd, a local listing without having to risk an initial public offering in a shaky market, where coal stocks in particular have been pummelled on worries about a global economic downturn.
A condition of Yancoal's A$3.3 billion takeover of another Australian coal miner, Felix Resources, in 2009 required it to float at least 30 percent of the business on the local exchange by 2012.
Yanzhou Coal chairman Li Weimin said in a statement the merger plan allows it to meet that requirement and at the same time "reflects the company's strategy to grow our Australia business and to become a global leader in the coal mining sector."
Gloucester, which has a market value of A$1.4 billion, is 64 percent owned by commodities trader Noble Group. Trading in the coal firm's shares were suspended earlier Thursday ahead of the expected offer.
Yanzhou said the transaction is subject to various approvals, and plans to complete the deal in the second quarter of 2012.
Yancoal and Gloucester both have mines and projects in New South Wales and Queensland. Gloucester aims to expand production to 10 million tonnes a year by 2016, while Yancoal expects to produce 20 million tonnes a year by 2015.
That would put a combined group ahead of Whitehaven Coal , which last week announced a $2.5 billion takeover of Aston Resources to create a company producing 25 million tonnes a year by 2016.
Since taking over Felix Resources, Yancoal has bought Syntech Resources for A$203 million and is about to complete the A$297 million acquisition of Premier Coal from Wesfarmers.
It sought to buy Whitehaven Coal earlier this year but the two were unable to settle on a price.
(sourced Reuters)
* Yanzhou says to merge Australian unit with Gloucester Coal
* Deal worth A$700 million in cash, or A$3.20 per share - Yancoal
* Reverse takeover creates one of largest coal companies in Australia
SYDNEY/HONG KONG, Dec 22 (Reuters) - China's Yanzhou Coal Mining Co Ltd said on Thursday it plans to merge its Australian unit with Gloucester Coal in a A$700 million deal that will create one of Australia's largest listed coal companies.
Australia's coal sector has seen a series of mergers and acquisitions initiated by Asian suitors hungry to satisfy fast growing domestic demand for coal from steel mills and power generation plants.
Yanzhou Coal's deal for Gloucester is also yet another case of a Chinese company buying up natural resource assets in Australia, tapping its commodity base to fuel massive residential, commercial and infrastructure projects across China.
Sydney-based Gloucester will be merged with Yancoal Australia Ltd., and Yanzhou will own 77 percent of the new company. Gloucester shareholders will own the rest and receive A$700 million ($705.36 million) in cash, the equivalent of A$3.20 in per share, Yancoal said in a statement. Each Gloucester Coal shareholder will receive one share in the merged company.
Gloucester closed at A$7.03 in Sydney on Dec. 19, before trading in the shares was suspended.
The reverse takeover of Gloucester would give Yanzhou Coal's Australian unit, Yancoal Australia Ltd, a local listing without having to risk an initial public offering in a shaky market, where coal stocks in particular have been pummelled on worries about a global economic downturn.
A condition of Yancoal's A$3.3 billion takeover of another Australian coal miner, Felix Resources, in 2009 required it to float at least 30 percent of the business on the local exchange by 2012.
Yanzhou Coal chairman Li Weimin said in a statement the merger plan allows it to meet that requirement and at the same time "reflects the company's strategy to grow our Australia business and to become a global leader in the coal mining sector."
Gloucester, which has a market value of A$1.4 billion, is 64 percent owned by commodities trader Noble Group. Trading in the coal firm's shares were suspended earlier Thursday ahead of the expected offer.
Yanzhou said the transaction is subject to various approvals, and plans to complete the deal in the second quarter of 2012.
Yancoal and Gloucester both have mines and projects in New South Wales and Queensland. Gloucester aims to expand production to 10 million tonnes a year by 2016, while Yancoal expects to produce 20 million tonnes a year by 2015.
That would put a combined group ahead of Whitehaven Coal , which last week announced a $2.5 billion takeover of Aston Resources to create a company producing 25 million tonnes a year by 2016.
Since taking over Felix Resources, Yancoal has bought Syntech Resources for A$203 million and is about to complete the A$297 million acquisition of Premier Coal from Wesfarmers.
It sought to buy Whitehaven Coal earlier this year but the two were unable to settle on a price.
(sourced Reuters)
Tuesday, October 25, 2011
Macarthur Coal directors to appoint Peabody-Arcelor nominees
Tue, Oct25, 2011
THE directors of Australian coal miner Macarthur Coal will stand down tomorrow and appoint nominees of the joint venture between Peabody Energy and ArcelorMittal, which took control of the miner yesterday, the company said.
Macarthur chairman Keith DeLacy said the takeover, which values Macarthur at $4.9 billion, was a "testament to Macarthur's extraordinary growth over the last decade".
The takeover joint venture, PEAMCoal, announced late yesterday that it had acquired 59.86 per cent of Macarthur shares, with a further 2.51 per cent in an acceptance facility, giving the company 62.37 per cent of shares.
US giant Peabody Energy yesterday completed its 19-month battle for the Queensland company.
The takeover was finalised as reports emerged last night of a possible bid for another Queensland coal producer, New Hope, Sarah-Jane Tasker reported yesterday.
The Peabody-ArcelorMittal $16-a-share bid was launched on July 11.
The US giant, which already operates eight projects in Queensland and NSW, had made four unsuccessful offers early last year.
It offered $13 a share in March 2010, before raising the bid to $14 a week later and $16 on April 15.
On May 10, the company reduced its offer to $15 a share following the controversy over Kevin Rudd's failed resource super-profits tax.
But Peabody did not give up and in July this year it gained the support of Macarthur's major shareholder ArcelorMittal, which had a 16 per cent stake, to resurrect its move on the miner, the day after the Gillard government announced the carbon tax.
The two parties had originally offered $15.50 a share, but the target's board secured the $16 price to win its support.
PeamCoal, the 60-40 joint venture formed by Peabody and Arcelor to bid for Macarthur, then announced on Friday that it would increase the offer price to $16.25 a share if it acquired at least 90 per cent of the miner by November 11.
(sourced The Autralian)
THE directors of Australian coal miner Macarthur Coal will stand down tomorrow and appoint nominees of the joint venture between Peabody Energy and ArcelorMittal, which took control of the miner yesterday, the company said.
Macarthur chairman Keith DeLacy said the takeover, which values Macarthur at $4.9 billion, was a "testament to Macarthur's extraordinary growth over the last decade".
The takeover joint venture, PEAMCoal, announced late yesterday that it had acquired 59.86 per cent of Macarthur shares, with a further 2.51 per cent in an acceptance facility, giving the company 62.37 per cent of shares.
US giant Peabody Energy yesterday completed its 19-month battle for the Queensland company.
The takeover was finalised as reports emerged last night of a possible bid for another Queensland coal producer, New Hope, Sarah-Jane Tasker reported yesterday.
The Peabody-ArcelorMittal $16-a-share bid was launched on July 11.
The US giant, which already operates eight projects in Queensland and NSW, had made four unsuccessful offers early last year.
It offered $13 a share in March 2010, before raising the bid to $14 a week later and $16 on April 15.
On May 10, the company reduced its offer to $15 a share following the controversy over Kevin Rudd's failed resource super-profits tax.
But Peabody did not give up and in July this year it gained the support of Macarthur's major shareholder ArcelorMittal, which had a 16 per cent stake, to resurrect its move on the miner, the day after the Gillard government announced the carbon tax.
The two parties had originally offered $15.50 a share, but the target's board secured the $16 price to win its support.
PeamCoal, the 60-40 joint venture formed by Peabody and Arcelor to bid for Macarthur, then announced on Friday that it would increase the offer price to $16.25 a share if it acquired at least 90 per cent of the miner by November 11.
(sourced The Autralian)
Friday, October 14, 2011
BHP set to bid $6bn for US coal giant Walter Energy
By Sarah-Jane Tasker,The Australian
October 15, 2011
BHP Billiton, the world's biggest mining company, is considering a $US6 billion ($5.86bn) takeover of a US coal producer to support its view that supply of the sought-after commodity will be scarcer than iron ore in the next decade.
Speculation from London yesterday suggested that the global major, fresh from receiving approval this week for its $30bn Olympic Dam copper and uranium expansion in South Australia, was circling Walter Energy, the world's largest producer of coal used for steelmaking.
The Birmingham, Alabama-based company was put in play in July, when activist hedge fund Audley Capital wrote to the board calling for it to seek a buyer because it lacked the leadership to take advantage of an "unprecedented market opportunity" after coal prices jumped.
Walter, whose share price has been cut in half since April, rebounded strongly on the takeover speculation. It jumped 13 per cent in New York to $US75.22 -- the biggest gain in five weeks.
With Walter Energy's market capitalised at about $US4.7bn, a bid of about $US6bn could be the target in any takeover move, given that analysts expect a 30 per cent bid premium.
Walter, which operates mines in Alabama, West Virginia, British Columbia and Wales, acquired Vancouver-based Western Coal in April for $C5.3bn, boosting its reach into Canada.
BHP chief executive Marius Kloppers is expected to be in Canada early next week, after the company's annual general meeting in London, where he is to meet Saskatchewan Premier Brad Wall.
While his visit is said to be an attempt to ease tensions between the miner and the government -- after BHP's $US39bn bid for Potash Corporation of Saskatchewan was killed off earlier this year because of political opposition to the deal -- it is also timely because of the bid speculation.
The global major's successful acquisitions this year were in shale gas in the US through a $US12.1bn bid for Petrohawk -- the miner's biggest acquisition -- and the $US4.75bn purchase of Chesapeake Energy's Arkansas shale ground.
But with the company tipping coal demand to increase in a supply-constrained market, its attention could now be turning to the steelmaking commodity.
BHP's chief executive of ferrous and coal, Marcus Randolph, said the company expected coking coal to be scarcer than iron ore over the next decade.
"We are more bearish about iron ore than coking coal," Mr Randolph said during the annual World Steel Association conference in Paris last week.
"Between now and 2020 there is going to be a lot more iron ore supply coming into the market than coking coal, and our expectation is that, of the two, the scarcer over that period of time will be coking coal."
One analyst said while it would be a surprise if BHP did bid for Walter, the activity could not be ruled out. "Mr Kloppers' acquisition agenda has always been assets that are large scale, low cost, easy to mine and a strong export market for the product. While this ticks all the boxes, it is not totally compelling," he said.
Rival bidders for Walter Energy could include Anglo American, Rio Tinto, Brazil's Vale and CSN. It was flagged early last month that Anglo American was considering a $US7.5bn bid for Walter.
Britain's Independent newspaper reported there was "vague speculation" that JPMorgan and Goldman Sachs had been called in as advisers to potential bidders.
BHP said it did not comment on market speculation.
(sourced The Australian)
October 15, 2011
BHP Billiton, the world's biggest mining company, is considering a $US6 billion ($5.86bn) takeover of a US coal producer to support its view that supply of the sought-after commodity will be scarcer than iron ore in the next decade.
Speculation from London yesterday suggested that the global major, fresh from receiving approval this week for its $30bn Olympic Dam copper and uranium expansion in South Australia, was circling Walter Energy, the world's largest producer of coal used for steelmaking.
The Birmingham, Alabama-based company was put in play in July, when activist hedge fund Audley Capital wrote to the board calling for it to seek a buyer because it lacked the leadership to take advantage of an "unprecedented market opportunity" after coal prices jumped.
Walter, whose share price has been cut in half since April, rebounded strongly on the takeover speculation. It jumped 13 per cent in New York to $US75.22 -- the biggest gain in five weeks.
With Walter Energy's market capitalised at about $US4.7bn, a bid of about $US6bn could be the target in any takeover move, given that analysts expect a 30 per cent bid premium.
Walter, which operates mines in Alabama, West Virginia, British Columbia and Wales, acquired Vancouver-based Western Coal in April for $C5.3bn, boosting its reach into Canada.
BHP chief executive Marius Kloppers is expected to be in Canada early next week, after the company's annual general meeting in London, where he is to meet Saskatchewan Premier Brad Wall.
While his visit is said to be an attempt to ease tensions between the miner and the government -- after BHP's $US39bn bid for Potash Corporation of Saskatchewan was killed off earlier this year because of political opposition to the deal -- it is also timely because of the bid speculation.
The global major's successful acquisitions this year were in shale gas in the US through a $US12.1bn bid for Petrohawk -- the miner's biggest acquisition -- and the $US4.75bn purchase of Chesapeake Energy's Arkansas shale ground.
But with the company tipping coal demand to increase in a supply-constrained market, its attention could now be turning to the steelmaking commodity.
BHP's chief executive of ferrous and coal, Marcus Randolph, said the company expected coking coal to be scarcer than iron ore over the next decade.
"We are more bearish about iron ore than coking coal," Mr Randolph said during the annual World Steel Association conference in Paris last week.
"Between now and 2020 there is going to be a lot more iron ore supply coming into the market than coking coal, and our expectation is that, of the two, the scarcer over that period of time will be coking coal."
One analyst said while it would be a surprise if BHP did bid for Walter, the activity could not be ruled out. "Mr Kloppers' acquisition agenda has always been assets that are large scale, low cost, easy to mine and a strong export market for the product. While this ticks all the boxes, it is not totally compelling," he said.
Rival bidders for Walter Energy could include Anglo American, Rio Tinto, Brazil's Vale and CSN. It was flagged early last month that Anglo American was considering a $US7.5bn bid for Walter.
Britain's Independent newspaper reported there was "vague speculation" that JPMorgan and Goldman Sachs had been called in as advisers to potential bidders.
BHP said it did not comment on market speculation.
(sourced The Australian)
Thursday, October 6, 2011
Anglo gets full ownership of Peace River Coal
Thu,Oct06, 2011
ANGLO American said yesterday it had acquired full ownership of its Peace River Coal partnership in British Columbia by purchasing the 25,17% in the metallurgical coal venture that it did not already own for $166m.
Anglo American has purchased the 12,18% stake held by Northern Energy & Mining for $76m, and the 12,99% held by Hillsborough Resources for $81m plus $9m for Hillsborough’s royalty rights.
Anglo American will be progressing a feasibility study to increase production at Peace River to 3,5-million tons a year by 2015 from 1-million tons, it said yesterday.
Reuters has reported that Anglo American might be among the bidders for Australian coal miner New Hope, which put itself up for auction yesterday.
New Hope said it had received several informal approaches and it would invite selected parties to bid, starting a process that could test Australia’s openness to foreign mine owners. New Hope would not name the interested parties.
Analysts said firms in rapidly growing China and India were probably among them, although industry officials in India said New Hope might be too expensive for an Indian company to acquire.
A takeover of New Hope, which has its own port, would be the latest in a string of deals in Australia’s coal sector, reflecting demand to feed Asia’s strong growth.
Chairman Robert Millner hinted that New Hope could be a reluctant target, but the company was obliged to explore any deal that would give shareholders best value. The company has A$1,5bn ($1,4bn) on its balance sheet and does not need a partner to fund expansion.
"We have not been out shopping the company. We are going down this path purely because we have had these approaches from numerous third parties," Mr Millner told Reuters, adding they were "preliminary and incomplete proposals".
New Hope’s open-cut New Acland mine produces thermal coal used in power plants. New Hope sells about 65% of its coal overseas and the rest to the domestic market.
A potential buyer could be China’s Yanzhou Coal Mining, which earlier this year unsuccessfully bid for Australia’s Whitehaven Coal.
Murray Bailey, the MD of Yanzhou’s Australian operations, Yancoal, is a former chief operations officer at New Hope.
London-based bankers said that Anglo-Swiss miner Xstrata, its peer Anglo American and commodity trader and miner Glencore might also be interested in New Hope.
"This is a region of the world where Xstrata is a major player and the product is important to them," one of the bankers said, although he added that he was not aware that any of those companies had appointed banks to work on a potential bid.
Indian firms such as GVK Power & Infrastructure and Adani have also been active in Australia.
Australia has scrutinised foreign miners’ bids very closely in recent years, particularly those from state- linked Asian companies, and has at times rejected them or imposed strict conditions.
New Hope is 59,7% owned by diversified investor Washington H Soul Pattinson, where Mr Millner is also the chairman.
New Hope had been talking to the interested parties for four to five months and would look at setting up a data room after indicative proposals came in within the next two months, he said.
"As there has been more and more interest, we decided this was the best and fairest way to go down this process," Mr Millner said. (sourced Bloomberg, Reuters)
ANGLO American said yesterday it had acquired full ownership of its Peace River Coal partnership in British Columbia by purchasing the 25,17% in the metallurgical coal venture that it did not already own for $166m.
Anglo American has purchased the 12,18% stake held by Northern Energy & Mining for $76m, and the 12,99% held by Hillsborough Resources for $81m plus $9m for Hillsborough’s royalty rights.
Anglo American will be progressing a feasibility study to increase production at Peace River to 3,5-million tons a year by 2015 from 1-million tons, it said yesterday.
Reuters has reported that Anglo American might be among the bidders for Australian coal miner New Hope, which put itself up for auction yesterday.
New Hope said it had received several informal approaches and it would invite selected parties to bid, starting a process that could test Australia’s openness to foreign mine owners. New Hope would not name the interested parties.
Analysts said firms in rapidly growing China and India were probably among them, although industry officials in India said New Hope might be too expensive for an Indian company to acquire.
A takeover of New Hope, which has its own port, would be the latest in a string of deals in Australia’s coal sector, reflecting demand to feed Asia’s strong growth.
Chairman Robert Millner hinted that New Hope could be a reluctant target, but the company was obliged to explore any deal that would give shareholders best value. The company has A$1,5bn ($1,4bn) on its balance sheet and does not need a partner to fund expansion.
"We have not been out shopping the company. We are going down this path purely because we have had these approaches from numerous third parties," Mr Millner told Reuters, adding they were "preliminary and incomplete proposals".
New Hope’s open-cut New Acland mine produces thermal coal used in power plants. New Hope sells about 65% of its coal overseas and the rest to the domestic market.
A potential buyer could be China’s Yanzhou Coal Mining, which earlier this year unsuccessfully bid for Australia’s Whitehaven Coal.
Murray Bailey, the MD of Yanzhou’s Australian operations, Yancoal, is a former chief operations officer at New Hope.
London-based bankers said that Anglo-Swiss miner Xstrata, its peer Anglo American and commodity trader and miner Glencore might also be interested in New Hope.
"This is a region of the world where Xstrata is a major player and the product is important to them," one of the bankers said, although he added that he was not aware that any of those companies had appointed banks to work on a potential bid.
Indian firms such as GVK Power & Infrastructure and Adani have also been active in Australia.
Australia has scrutinised foreign miners’ bids very closely in recent years, particularly those from state- linked Asian companies, and has at times rejected them or imposed strict conditions.
New Hope is 59,7% owned by diversified investor Washington H Soul Pattinson, where Mr Millner is also the chairman.
New Hope had been talking to the interested parties for four to five months and would look at setting up a data room after indicative proposals came in within the next two months, he said.
"As there has been more and more interest, we decided this was the best and fairest way to go down this process," Mr Millner said. (sourced Bloomberg, Reuters)
Thursday, September 1, 2011
Anglo American could lose out on Macarthur Coal
Thursday, 01 Sep 2011
The Telegraph reported that Anglo American is poised to lose out in the AUD 4.9 billion takeover tussle for Macarthur Coal after the Australian company recommended a sweetened offer from a consortium of US based Peabody Energy and European steelmaker ArcelorMittal.
Anglo American had gained access to the Australian group's data room and had been weighing up whether to make a formal offer for Macarthur, which mines low cost coal.
However, Macarthur has recommend an increased AUD 16 a share offer from the Peabody ArcelorMittal combine after the pair lifted the offer price from AUD 15.50. Macarthur shareholders are also entitled to a recently declared dividend, making the total offer AUD 16.16 a share. Macarthur shares rose 0.06 cents to AUD 15.86.
ArcelorMittal already owns 16.1% of Macarthur's shares and the offer from the PEAMCoal bid vehicle is conditional on securing 50.01% acceptances from the coal mining company's shareholders. The acceptances threshold was put in place to get around China's Citic Resources, which has a 24.5% stake in Macarthur and could move to block a full scale takeover.
In 2010, the Chinese group made it clear it would not endorse a change of control when Peabody, which was then acting alone, made a failed an AUD 15 a share bid for Macarthur. Some analysts reckon the protracted takeover battle for Macarthur is over. This is because it has already agreed an AUD 48.3 million break fee, and also no shop and no talk provisions that restrict any future negotiations with rival bidders.
PEAMCoal also has the right to provide a matching offer in the event of any competing proposal that Macarthur's board considers superior.
Mr Jamie Spiteri, head dealer at Shaw Stockbroking in Sydney, told Bloomberg that "There's probably not a lot more that can be extracted for Macarthur shareholders unless there's a challenge from another party."
Mr Andrew Harrington, an analyst with Patersons Securities, said that "It's a fair value price. Any counter bid is becoming increasingly difficult."
In its statement to the Australian stock exchange, Macarthur said a number of parties have conducted due diligence.
The Macarthur deal comes amid a revival of takeovers of mining companies following a sell off of natural resource company share prices. They include last week's AUD 268 million bid by Glencore International for Minara Resources.
sourced Telegraph
The Telegraph reported that Anglo American is poised to lose out in the AUD 4.9 billion takeover tussle for Macarthur Coal after the Australian company recommended a sweetened offer from a consortium of US based Peabody Energy and European steelmaker ArcelorMittal.
Anglo American had gained access to the Australian group's data room and had been weighing up whether to make a formal offer for Macarthur, which mines low cost coal.
However, Macarthur has recommend an increased AUD 16 a share offer from the Peabody ArcelorMittal combine after the pair lifted the offer price from AUD 15.50. Macarthur shareholders are also entitled to a recently declared dividend, making the total offer AUD 16.16 a share. Macarthur shares rose 0.06 cents to AUD 15.86.
ArcelorMittal already owns 16.1% of Macarthur's shares and the offer from the PEAMCoal bid vehicle is conditional on securing 50.01% acceptances from the coal mining company's shareholders. The acceptances threshold was put in place to get around China's Citic Resources, which has a 24.5% stake in Macarthur and could move to block a full scale takeover.
In 2010, the Chinese group made it clear it would not endorse a change of control when Peabody, which was then acting alone, made a failed an AUD 15 a share bid for Macarthur. Some analysts reckon the protracted takeover battle for Macarthur is over. This is because it has already agreed an AUD 48.3 million break fee, and also no shop and no talk provisions that restrict any future negotiations with rival bidders.
PEAMCoal also has the right to provide a matching offer in the event of any competing proposal that Macarthur's board considers superior.
Mr Jamie Spiteri, head dealer at Shaw Stockbroking in Sydney, told Bloomberg that "There's probably not a lot more that can be extracted for Macarthur shareholders unless there's a challenge from another party."
Mr Andrew Harrington, an analyst with Patersons Securities, said that "It's a fair value price. Any counter bid is becoming increasingly difficult."
In its statement to the Australian stock exchange, Macarthur said a number of parties have conducted due diligence.
The Macarthur deal comes amid a revival of takeovers of mining companies following a sell off of natural resource company share prices. They include last week's AUD 268 million bid by Glencore International for Minara Resources.
sourced Telegraph
Tuesday, August 30, 2011
Peabody ArcelorMittal and Macarthur board agree for takeover
Tuesday, 30 Aug 2011
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.
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.
Friday, August 26, 2011
BHP completes Petrohawk Energy takeover
Fri, 26 August 2011
AFP - Mining giant BHP Billiton said on Friday it had completed its US$12.1 billion takeover of the US-based Petrohawk Energy Corporation.
The company, which posted a record-breaking financial year profit of US$23.6 billion this week, said the deal was sealed through a short-form merger under Delaware law.
This was the final step of the acquisition process and follows the previously announced completion of the tender offer by BHP to acquire all outstanding Petrohawk common stock.
BHP Billiton petroleum chief executive Michael Yeager said the takeover adds high-quality growth to the company.
"With the completion of this transaction, BHP Billiton Petroleum is on track to deliver compound annual growth in production volumes of 10 percent for the remainder of the decade," he said.
"We are excited that Petrohawk's sizeable US workforce is joining our talented group of professionals and we are ready to grow this business over the long-term."
It follows BHP's purchase earlier this year of US-based Chesapeake Energy Corp's shale gas holdings in Arkansas, along with some pipeline assets, for US$4.75 billion, as it seeks to diversify beyond mining and minerals.
(sourced France24)
AFP - Mining giant BHP Billiton said on Friday it had completed its US$12.1 billion takeover of the US-based Petrohawk Energy Corporation.
The company, which posted a record-breaking financial year profit of US$23.6 billion this week, said the deal was sealed through a short-form merger under Delaware law.
This was the final step of the acquisition process and follows the previously announced completion of the tender offer by BHP to acquire all outstanding Petrohawk common stock.
BHP Billiton petroleum chief executive Michael Yeager said the takeover adds high-quality growth to the company.
"With the completion of this transaction, BHP Billiton Petroleum is on track to deliver compound annual growth in production volumes of 10 percent for the remainder of the decade," he said.
"We are excited that Petrohawk's sizeable US workforce is joining our talented group of professionals and we are ready to grow this business over the long-term."
It follows BHP's purchase earlier this year of US-based Chesapeake Energy Corp's shale gas holdings in Arkansas, along with some pipeline assets, for US$4.75 billion, as it seeks to diversify beyond mining and minerals.
(sourced France24)
Monday, August 15, 2011
African Minerals seeks tighter takeover protection
Mon Aug 15, 2011
* Vote on provisions to be taken at AGM in September
* Protection will be similar to UK Takeover Code
By Julie Crust
LONDON, Aug 15 (Reuters) - African Minerals (AMIq.L), the largest company on London's junior AIM market, will ask shareholders next month to vote on increasing its takeover protection with the company's corporate profile likely to rise once it starts producing iron ore.
The provisions will be a diluted version of the UK's Takeover Code, which regulates the way acquisitions are done. The Bermuda-registered miner is not covered by the code.
African Minerals, which last month appointed Deutsche Bank as its nominated adviser and broker, said it is not looking to lift its protection in response to any specific interest.
"It is appropriate to protect shareholders given that the company is moving from exploration to producer in Q4 this year," a spokesman told Reuters.
African Minerals expects to start producing iron ore at its flagship Tonkolili project in Sierra Leone this year. Shandong Iron & Steel, the world's ninth-largest steel group, is paying $1.5 billion for a 25 percent stake in the project.
Shares in the company have risen about 30 percent this year, valuing it at some $2.9 billion.
African Minerals is led by Chairman Frank Timis, a self-made billionaire with drugs convictions who fled communist Romania.
Timis owns 12.4 percent of African Minerals with Timis Diamond Corp holding 12.6 percent. He is committed to remaining a director of African Minerals until Phase III development of the project has been completed.
Tonkolili is expected to produce 12 million tonnes of iron ore a year at full capacity, rising by 23 million tonnes and by 45 million a year following planned Phase II and III expansions. ($1 = 0.614 British Pounds)
(sourced Reuters)
* Vote on provisions to be taken at AGM in September
* Protection will be similar to UK Takeover Code
By Julie Crust
LONDON, Aug 15 (Reuters) - African Minerals (AMIq.L), the largest company on London's junior AIM market, will ask shareholders next month to vote on increasing its takeover protection with the company's corporate profile likely to rise once it starts producing iron ore.
The provisions will be a diluted version of the UK's Takeover Code, which regulates the way acquisitions are done. The Bermuda-registered miner is not covered by the code.
African Minerals, which last month appointed Deutsche Bank as its nominated adviser and broker, said it is not looking to lift its protection in response to any specific interest.
"It is appropriate to protect shareholders given that the company is moving from exploration to producer in Q4 this year," a spokesman told Reuters.
African Minerals expects to start producing iron ore at its flagship Tonkolili project in Sierra Leone this year. Shandong Iron & Steel, the world's ninth-largest steel group, is paying $1.5 billion for a 25 percent stake in the project.
Shares in the company have risen about 30 percent this year, valuing it at some $2.9 billion.
African Minerals is led by Chairman Frank Timis, a self-made billionaire with drugs convictions who fled communist Romania.
Timis owns 12.4 percent of African Minerals with Timis Diamond Corp holding 12.6 percent. He is committed to remaining a director of African Minerals until Phase III development of the project has been completed.
Tonkolili is expected to produce 12 million tonnes of iron ore a year at full capacity, rising by 23 million tonnes and by 45 million a year following planned Phase II and III expansions. ($1 = 0.614 British Pounds)
(sourced Reuters)
Monday, March 21, 2011
Thai PTT completes Australian Straits Resources deal
Mon Mar 21, 2011 4:12am GMT
* Seeks delisting of Australian mining firm
* Shares up 1.5 pct, outperform market
BANGKOK, March 21 (Reuters) - Thailand's top energy company, PTT Pcl (PTT.BK: Quote) said on Monday it had completed the acquisition of Australia's Straits Resources Ltd (SRL.AX: Quote) and would delist the coal miner from the Australian stock exchange
PTT told the Thai exchange the Federal Court of Australia had approved the takeover, under which PTT Mining Ltd (PTTML) would acquire all of the shares in Straits Resources, renamed International Coal Holdings Ltd (ICL), for A$544.1 million ($546 million).
The company said all the shares in ICL had now been registered in the name of PTTML.
PTT said in November last year it was buying 100 percent of the Australian mining firm as part of its long-term strategy to focus on high-quality coal assets with good growth prospects.
PTT Mining is a wholly owned subsidiary of PTT International Co Ltd, a holding company set up to invest in overseas businesses for the Thai energy giant.
State-owned PTT, Asia-Pacific's third-largest listed oil and gas firm by market value, has been looking to snap up foreign assets in a bid to diversify risk and bolster its presence in the international market.
PTT spent $335 million in April 2009 to buy part of Straits Resources' coal and salt assets, its first foray into the coal business and its second investment in Australia.
The company had said it expected to boost its coal output after the Straits Resources and other acquisitions to 30 million tonnes in the next five years.
At 0334 GMT, PTT shares were up 1.5 percent at 342 baht while the broader market .SETI was 1 percent higher. ($1= 30.30 Baht) (Reporting by Ploy Ten Kate; Editing by Alan Raybould,sourced reuters)
PTT told the Thai exchange the Federal Court of Australia had approved the takeover, under which PTT Mining Ltd (PTTML) would acquire all of the shares in Straits Resources, renamed International Coal Holdings Ltd (ICL), for A$544.1 million ($546 million).
The company said all the shares in ICL had now been registered in the name of PTTML.
PTT said in November last year it was buying 100 percent of the Australian mining firm as part of its long-term strategy to focus on high-quality coal assets with good growth prospects.
PTT Mining is a wholly owned subsidiary of PTT International Co Ltd, a holding company set up to invest in overseas businesses for the Thai energy giant.
State-owned PTT, Asia-Pacific's third-largest listed oil and gas firm by market value, has been looking to snap up foreign assets in a bid to diversify risk and bolster its presence in the international market.
PTT spent $335 million in April 2009 to buy part of Straits Resources' coal and salt assets, its first foray into the coal business and its second investment in Australia.
The company had said it expected to boost its coal output after the Straits Resources and other acquisitions to 30 million tonnes in the next five years.
At 0334 GMT, PTT shares were up 1.5 percent at 342 baht while the broader market .SETI was 1 percent higher. ($1= 30.30 Baht) (Reporting by Ploy Ten Kate; Editing by Alan Raybould,sourced reuters)
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