GCL 0.00% $3.54 gloucester coal ltd

News: Gloucester board backs merger deal

  1. lightbulb Created with Sketch. 1
    .

    Gloucester Coal Limited’s (ASX:GCL) board has backed a revised merger proposal with China's state-owned Yancoal Australia.



    Under the new deal Yancoal would control 78 per cent of the new entity with Gloucester holding the remaining 22 per cent and its shareholders receiving a cash payment of $3.15, $0.05 lower than the original proposal. 



    While the merger remains subject to a number of conditions, including regulatory approvals, Gloucester has recommended its shareholders vote in favour of the deal.



    Gloucester says the transaction provides its shareholders with the opportunity to participate in a globally significant coal company that is expected to be Australia’s largest listed pure-play producer.



    Yancoal says the merger generates synergies through increased coal blending and marketing opportunities and savings in procurement, logistics and overhead.



    Gloucester Coal booked a net loss of $36.9 million in the first half of its 2012 financial year.

 
watchlist Created with Sketch. Add GCL (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.