05 Aug 2010

Bloomberg reported that Australian producer controlled by Hong Kong based Noble Group Ltd Gloucester Coal Ltd plans to sell as much as AUD 455 million (USD 416 million) in shares to pay for the purchase of assets from its parent company.

Gloucester is offering the shares at AUD 9.25 each to existing individual and institutional holders. Gloucester plans to pay Noble AUD 437.5 million, comprising cash and AUD 100 million of its shares, for a 27.52% stake in the Middlemount coking coal joint venture in Queensland and associated assets. Noble’s stake in Gloucester may be cut to as low as 61% from 87.7%.

Mr Barry Tudor said that “Middlemount is a high quality development project that will not only provide Gloucester with product and geographical diversification, but considerable near-term production growth to ensure we will be well placed to benefit from the expected long- term strength in metallurgical coal markets. The equity raising announced today will increase Gloucester’s free float and liquidity.”