Macarthur cancels CITIC transaction

Macarthur Coal has terminated its bid to acquire CITIC Resources' stake in the Coppabella and Moorvale joint venture.

Macarthur Coal has terminated its bid to acquire CITIC Resources’ stake in the Coppabella and Moorvale joint venture.

The company said a number of minority participants in the joint venture had declined to waive their pre-emptive rights. 

Macarthur originally announced the bid in December last year and was offering CITIC $110 million in the form of 11.3 million shares at a fixed price of $9.70 per share.

In order to go through, all participants in the joint venture were required to waive their pre-emptive rights.

The transaction was also awaiting approval at a Macarthur shareholder meeting on 30 September this year; however the meeting will now not go ahead.

“The rationale for the CITIC transaction remains sound and is in line with the future growth direction and vision of the company to be Australia’s leading independent coal company,” Macarthur managing director Nicole Hollows said.

“Macarthur is committed to review and assess similar opportunities should they arise in the future.

“Meanwhile, Macarthur would like to thank the joint venture minority participants for their engagement with Macarthur and CITIC in the process to date.”

Macarthur’s interest in the joint venture will remain at 73.3%. 

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