Australian miner Macarthur Coal has received a joint takeover bid from Peabody Energy (NYSE:BTU) and ArcelorMittal (NYSE:MT) valued at $5.03 billion.
The worlds largest producer of pulverized coal said Monday the U.S. companies offered $15.50 Australian dollars a share for the business, representing a 40% premium to its closing price on Monday of A$11.08 a share.
The bid was sent by a newly formed company made up 60% by Peabody and 40% by ArcelorMittal. That business already has an interest of about 16% in Macarthurs shares.
The proposal is conditional on the successful completion of due diligence. After, the deal would require shareholder approval from a minimum of 50.01% as well as regulatory approvals and customary closing conditions.
We believe there is significant value that can be created by managing Macarthur's portfolio of coal assets using Peabody's industry-leading operating, development and commercial skills, Peabody CEO Greg Boyce said.
In a statement, Macarthur said it makes no recommendation and advised shareholders take no action in relation to the proposal but will seek to engage with the joint bidders in relation to pricing and terms.