Revised Merger Terms for Gloucester Coal and Yancoal

Mining Weekly reported that Gloucester Coal Ltd. (ASX:GCL) and Yancoal Australia Ltd. have revised the terms of their proposed merger.

As quoted in the market news:

Gloucester reported that the two companies now agreed to a revised merger proposal, which would include modified contingent value rights shares for Gloucester shareholders, a $300-million reduction in Yancoal’s current debt contribution, and a revised merger ration where Gloucester shareholders would own 22% of the merged entity, while Yancoal would retain a 78% shareholding.

Separate to the merger, eligible Gloucester shareholders would now receive $3.15 in cash for each share held, comprising a special dividend of $0.44 a share and a capital return of $2.71 a share.

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