Coal miner Gloucester Coal Ltd
(ASX:GCL) has recommended that shareholders accept a takeover offer from Macarthur Coal Ltd
(ASX:MCC).
On December 22, Macarthur made an offer of to acquire all of Gloucester Coal shares offering either 0.84 Macarthur shares for every one Gloucester share or $8 cash for every one Gloucester share.
An independent expert’s review of the offer found it to be fair and reasonable, saying that the estimated fair market value of a share in Gloucester is in the range of $7.75 to $8.75 on a control basis and the valuation range for a share in the merged entity has been estimated in the range of $8.90 to $10.80 based on a sum of the parts method.
The expert also says based on the share market trading activity in Macarthur since the announcement of the Offer, the assessed value of a share in the merged entity is in the range of $10 to $11.
Gloucester Coal posted profit after tax of $81.74 million for the 12 months to June 30, 2009.
