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(Updates to add Peabody comment in third paragraph.)
Oct. 21 (Bloomberg) -- China’s Citic Group, the biggest shareholder in Macarthur Coal Ltd., agreed to accept Peabody Energy Corp. and ArcelorMittal’s takeover offer for the Australian producer.
Citic’s acceptance of the A$16 ($16.37) a share offer will take Peabody and ArcelorMittal’s stake in the Brisbane-based company to more than 49 percent, the two companies said today in a statement. They will raise the bid to A$16.25 a share should they gain a stake of at least 90 percent, Citic said in a separate statement.
The higher bid values Macarthur at about A$4.9 billion and has been extended to Nov. 11. Buying Macarthur will give Peabody and ArcelorMittal ownership of steelmaking coal mines in Queensland, the world’s biggest exporter of the fuel.
“We are pleased that these shareholders have decided to accept our offer,” Gregory Boyce, Peabody chief executive officer said in the statement. “We look forward to transitioning to the next phase of Macarthur’s future.”
Macarthur shares closed yesterday in Sydney at A$16.08.
--Editors: Keith Gosman, Andrew Hobbs
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