Macarthur to deliver for Peabody: Boyce

PEABODY Energy’s $A4.9 billion takeover of Macarthur Coal will give the company strategic benefits, chief executive Gregory Boyce says.
Macarthur to deliver for Peabody: Boyce Macarthur to deliver for Peabody: Boyce Macarthur to deliver for Peabody: Boyce Macarthur to deliver for Peabody: Boyce Macarthur to deliver for Peabody: Boyce

Peabody Energy chairman and CEO Gregory Boyce.

Lou Caruana

Its PEAMcoal bidding vehicle obtained a relevant interest in more than 90% of Macarthur and began the process of the compulsory acquisition of all outstanding shares.

Boyce said all Macarthur shareholders would be entitled to receive the increased offer price of $16.25 per share.

“We are very pleased to be acquiring 100 per cent of Macarthur shares, which brings clear strategic and financial benefits,” he said.

“Peabody welcomes Macarthur employees into the Peabody team and looks forward to completing operational improvements, accelerating the realisation of synergies and advancing Macarthur’s growth pipeline.”

Macarthur Coal is a leading producer of low volatile pulverised coal injection metallurgical coal, with production and development assets in Queensland’s Bowen Basin 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 is the world's largest private sector coal company, with 2010 sales of 246Mt and nearly $US7 billion in revenues.

Peabody Energy fuels 10% of US power and 2% of worldwide electricity.

The offer under the takeover bid will not be extended further and will end on November 25, 2011.

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