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.
