Regional: Peabody to acquire 100% stake in Macarthur Coal

World?s top coal producer Peabody Energy announced Wednesday that PEAMCoal Pty Ltd has begun the process of a compulsory acquisition of all outstanding shares of Macarthur Coal Limited after obtaining a relevant interest in more than 90 percent of the shares.

All Macarthur shareholders will now be entitled to receive the increased offer price of A$16.25 per share, Peabody said in statement.

"We are very pleased to be acquiring 100 percent of Macarthur shares, which brings clear strategic and financial benefits," said Peabody Energy chairman and chief executive officer Gregory H. Boyce. "Peabody welcomes Macarthur employees into the Peabody team, and looks forward to completing operational improvements, accelerating the realization of synergies and advancing Macarthur's growth pipeline."

The offer under the takeover bid will not be extended further, and will end on 25 November 2011. Shareholders are encouraged to tender shares by the deadline to receive faster cash payment for their shares (within 10 business days after the date of acceptance). Those Macarthur shareholders who do not tender during the offer period will have their shares acquired in a compulsory manner and can expect to be sent their payments in approximately five to six weeks, it said.

Macarthur Coal is a leading producer of low-volatile PCI metallurgical coal with production and development assets in the Bowen Basin, Australia, 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. (denny)