Macarthur’s takeover of Gloucester did not go to plan, with Peabody and New Hope launching their own bids for the Queensland metallurgical coal producer.
Noble owns 87.7% of Gloucester thanks to its $7 cash takeover offer last year.
The Hong Kong-based commodities trader stood to gain up to a quarter of Macarthur through the scrip-based elements of the transaction. It expressed more frustration yesterday.
“We are getting sick of sitting around as a patient backstop to allow Macarthur to be shopped to the world,” Noble said.
“We feel like the patient suitor driving the prom queen to all her other dates.”
However, Macarthur’s union with Gloucester is firmly off the cards, with Noble shareholders voting against the deal yesterday.
This paves the way for Noble’s separate takeover offer for the remaining Gloucester shares, which was conditional on the Macarthur takeover not going ahead.
Gloucester announced it would issue a target’s statement in due course that will consider the potential implications of Noble’s April 6 offer.
Macarthur will continue discussions with Noble as the commodities trader might exercise its option to increase its interest in the Middlemount joint venture to 50%, plus retain the right to sell 100% of the mine’s output.
Peabody’s five-day limited due diligence is underway, with dragline specialists included in the technical team comprising of people from the company’s US and Australian operations.
After rejecting previous bids from Peabody and New Hope, Macarthur’s board decided to engage Peabody on Friday.
Peabody made a $16 a share cash offer but stated it was after a controlling interest in Macarthur as opposed to a full takeover.
This arrangement allows Macarthur’s substantial shareholders to keep their stakes.
CITIC Resources, ArcelorMittal and POSCO collectively own 47.4% of Macarthur.
Macarthur aims to kick off the stage 2 Middlemount in mid-2011.
Production capacity at the coking and pulverised coal injection coal mine is expected to double to 3.6 million tonnes per annum for the first year before reaching 5.4Mtpa for the next 19 years.
Gloucester shares are up 8c to $12.18 this morning while Macarthur shares are up 1c to $16.55.
