Peabody Energy, ArcelorMittal agree to cash takeover of Australia's Macarthur Coal for AU$16/share, valuing equity of Macarthur at about AU$4.8B
ST. LOUIS and LUXEMBOURG
August 30, 2011
– Peabody Energy (NYSE: BTU) and ArcelorMittal (NYSE: MT) today announced that PEAMCoal has agreed to terms with the Macarthur board for a cash takeover of all outstanding shares of Macarthur Coal for A$16.00(1) per share, valuing the equity in Macarthur at approximately A$4.8 billion. All participating members of the Macarthur Board recommend that Macarthur shareholders accept the new PEAMCoal offer.
"This is a major step forward in our acquisition process," said Peabody Energy Chairman and Chief Executive Officer Gregory H. Boyce. "We are pleased to have Macarthur, Peabody and ArcelorMittal moving forward together to urge shareholders to accept this attractive premium. We now look forward to completing this transaction in a timely manner."
Aditya Mittal, CFO and Member of the Group Management Board at ArcelorMittal, said, "Our offer is the only offer before Macarthur shareholders, and we urge them to accept without delay and receive a substantial premium for their investment."
PEAMCoal and Macarthur have entered into an implementation deed, which is available on PeabodyEnergy.com. The improved offer is subject to limited conditions as set out in section 11.7 of PEAMCoal's replacement bidder's statement dated 15 August 2011, including minimum 50.01% acceptances and final regulatory clearance or expiry of the relevant waiting period.
The price to be received by Macarthur shareholders of A$16.00 per share represents a substantial premium of:
44% to A$11.08 per share, the closing price on July 11, the day Peabody and ArcelorMittal's initial approach was disclosed to the market;
48% to A$10.82 per share, the one-month volume-weighted average price (VWAP) to July 11;
41% to A$11.32 per share, the three-month VWAP to July 11; and
33% to A$12.02 per share, the twelve-month VWAP to July 11.
Macarthur shareholders seeking further information regarding the offer should contact PEAMCoal's Offer Information Line on 1800 992 039 (for callers within Australia) or +61 2 8280 7692 (for callers outside Australia).
About Macarthur Coal
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.
About Peabody Energy
Peabody Energy is the world's largest private-sector coal company and a global leader in clean coal solutions. With 2010 sales of 246 million tons and nearly $7 billion in revenues, Peabody Energy fuels 10% of U.S. power and 2% of worldwide electricity. For more information about Peabody Energy visit: www.peabodyenergy.com.
Contact: Vic Svec (+1 314 342-7768)
ArcelorMittal is the world's leading integrated steel and mining company, with operations in more than 60 countries. In 2010, ArcelorMittal had revenues of US$78 billion and crude steel production of 90.6 million tonnes, representing approximately 8% of world steel output. ArcelorMittal's mining operations produced 47 million tonnes of iron ore and 7 million tonnes of metallurgical coal as well in 2010. For more information about ArcelorMittal visit: www.arcelormittal.com.
Contact: Giles Read (+44 20 3214 2845)
(1) Macarthur shareholders on the register on the record date of 2 September 2011 will also be entitled to receive the final dividend in respect of FY2011 of 16 cents per share with no reduction in the A$16.00 per share offer price. The final dividend will be paid to all shareholders of Macarthur on 9 September 2011.
SOURCE Peabody Energy