Under the offer, Macarthur shareholders will be offered A$15.50 ($17.1) cash per share, valuing the equity in Macarthur at about A$4.7bn ($5.19bn).
The shareholders will also be entitled to retain any final dividend declared by Macarthur in respect of the financial year ended 30 June 2011, up to an amount of 16 cents per share, without reducing the offer price.
According to the companies, the total value of the A$15.66 ($17.3) cash per share represents 45% premium to one month volume weighted average price.
The offer is made by a newly formed company, PEAMCoal, which is owned 60% by Peabody and 40% by ArcelorMittal.
The all-cash offer is subject to conditions including minimum 50.01% acceptances, approval by Australia’s Foreign Investment Review Board, other regulatory approvals and other standard conditions.
