TRADING IN shares of Gloucester Coal was suspended yesterday as China’s Yancoal was said to be preparing a takeover offer estimated to be worth two billion Australian dollars in what would be the latest foreign push into Australia’s coal sector.
The Gloucester Coal and Yancoal boards were due to meet to consider a deal, with an announcement expected afterwards.
Media reports have put a pending offer by Yancoal at about A$2 billion. Gloucester, which has a market value of A$1.4 billion and is 64 per cent owned by commodities trader Noble Group, said it was not yet in a position to make an announcement and sought a suspension of its shares.
A condition of Yancoal’s A$3.3 billion takeover of another Australian coal miner, Felix Resources, in 2009 required it to float at least 30 per cent of the business on the local exchange by 2012. A reverse takeover of Gloucester could achieve this as it is already listed in Australia.
“I will look for a strong change-of-control premium,” said Paul Xiradis, chief executive at fund manager Ausbil Dexia, which owns Gloucester shares. – (Reuters)
