Gloucester deal sweeter than New Hope’s revised offer: Macarthur
15 Apr 2010
Macarthur Coal yesterday once again rejected New Hope's takeover offer laced with a cash option, and said that its planned takeover of Gloucester Coal is a better option.
Queensland-based New Hope sweetened its last week's all-stock $3.44 billion offer for acquiring Macarthur by including a cash option of $14.50 per share subject to a cap of $822.9 million (See: New Hope sweetens Macarthur Coal bid with new $822.9-million cash option).
The board of Macarthur said in a statement, ''The revised New Hope proposal does not represent an adequate premium for control of the company."
The board noted that since the cash option is capped at $822.9 million, and if all the shareholders opt for the cash option, Macarthur shareholders would receive cash for only 26 per cent of their Macarthur shares and may be forced to accept New Hope's share for their remaining 74 per cent of Macarthur shares.
But analysts say that this is one of the norms in any takeover, where a cash and stock option is offered.
The board said that it will proceed with its Extraordinary General Meeting scheduled for 19 April 2010 to approve the proposed takeover of Gloucester Coal and acquiring a stake in the Middlemount project from the Hong Kong-based commodities trader Noble Group.