Commodities trader Noble owns 89.88% of Gloucester, but is excluded from voting on the deal.
Gloucester’s proposal includes a $A455 million issue of shares at $9.25 each, with the $437.5 million of funds used to purchase Noble’s 27.52% stake in the Middlemount mine in Queensland.
Macarthur Coal owns the remaining stake of the mine, and increased the measured resources by 192% to 89.3 million tonnes this week.
Total resources increased 22% from last year to 122.6Mt.
“The issue of shares under the entitlement offer will significantly increase the size and liquidity of Gloucester,” Gloucester chairman James MacKenzie said.
“After the entitlement offer and the completion of the Noble placement, Noble’s ownership of Gloucester is expected to be approximately 60%.”
Noble has a separate $12.60 per Gloucester share offer underway which is set to expire on September 3, unless it is further extended.
Noble bought up an 87.8% stake in Gloucester with its $7 per share cash takeover last year.
Gloucester shares are unchanged at $12.46 this morning.