Rio Tinto, Mitsubishi to Acquire Remaining Coal & Allied Shares

Thursday, 25 August 2011 09:21

In early August, Coal & Allied Industries Ltd. announced Rio Tinto and Mitsubishi Development would acquire all of the shares in Coal & Allied they do not already hold under a joint takeover proposal. The total cash amount of A$123.20 per share represents a 35.4% premium to Coal & Allied’s closing price of A$91 on August 5, 2011. The discussions remain subject to a number of matters including regulatory approvals and Rio Tinto and Mitsubishi Development entering into joint bid and other arrangements in relation to the proposal on agreed terms. Rio Tinto is Coal & Allied’s largest shareholder (75.71%), while Mitsubishi Development currently holds 10.20%.