Glencore Increases Fully Funded Offer for Coal & Allied

Glencore has submitted an improved irrevocable binding offer (“Glencore Offer”) to acquire Rio Tinto’s 100% interest in Coal & Allied Industries Limited (“C&A”) for US$2.675 billion cash plus a coal price linked royalty. All cash is payable in full immediately upon completion.

As quoted in the press release:

Improved Offer
Glencore’s Offer has been designed to address the points raised in Rio Tinto’s announcement dated 20 June 2017 as follows.

  • Value: Glencore’s Offer is at least US$225 million greater than Yancoal’s proposal.

  • Payment timing: The full US$2.675 billion cash consideration is payable in full on completion (no deferred payments).

  • Regulatory Risk:

    • The Glencore Offer remains conditional only on approval from China, Korea, Taiwan and Australia. Japanese regulatory approval to acquire C&A has already been obtained.

    • Glencore believes that there is no legal basis to consider that such approvals will not be obtained.

    • Demonstrating our confidence in securing all approvals, Glencore’s Offer is supported by a US$225 million deposit which will be forfeited if the transaction does not complete as a result of a failure to obtain a regulatory approval. Refer Appendix for further details on regulatory approvals.

Click here for the full text release

 

Get the Latest Coal Investing Stock Information

Get the latest information about companies associated with Coal Investing delivered directly to your inbox.

By selecting company or companies above, you are giving consent to receive email from those companies. And remember you can unsubscribe at any time.

Comments

Leave a Reply