Macarthur, CITIC axe deal

MACARTHUR Coal has terminated a $A110 million deal with CITIC Resources Holdings.
Macarthur, CITIC axe deal Macarthur, CITIC axe deal Macarthur, CITIC axe deal Macarthur, CITIC axe deal Macarthur, CITIC axe deal

Courtesy Macarthur Coal.

Staff Reporter

In December, Macarthur Coal announced an intention to acquire all of CITIC’s ownership and marketing interests in the Coppabella and Moorvale joint venture in return for Macarthur issuing CITIC with 11.3 million Macarthur shares at a fixed price of $9.70 for a total value $110 million.

 

However, Macarthur said it had agreed with CITIC to terminate the transaction, given some minority participants in the Coppabella and Moorvale JV have not waived pre-emptive rights in relation to the proposed transaction.

 

Macarthur chief executive officer and managing director Nicole Hollows said the rationale for the deal “remains sound and is in line with the future growth direction and vision of the company to be Australia’s leading independent coal company”.

 

“Macarthur is committed to review and assess similar opportunities should they arise in the future.

 

“Meanwhile, Macarthur would like to thank the Coppabella and Moorvale JV minority participants for their engagement with Macarthur and CITIC in the process to date.”

 

Termination of the CITIC deal means that Macarthur’s stake in the JV will remain at 73.3%.

 

Macarthur shares closed down 15c after the announcement yesterday to $12.87.

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