Stocks To Watch MCC
5th Mar 2010In stock market news, Gloucester Coal and Macarthur Coal this week confirmed an off-market takeover of GCL is likely, with Gloucester recommending the deal to its shareholders.
MCC is offering 0.84 MCC shares for each GCL share, or $8 cash for each GCL share.
The merged entity will have attributable reserves and resources of 194 million tonnes and 1.2 billion tonnes, respectively, to support future production growth throughout the Bowen and Gloucester Basins. The new entity also stands to become one of the bigger companies in the stock market.
Recent heavy rains in Queensland have helped drive spot prices for coking coal to $US220 per tonne, opening up a $US13 billion annual revenue gap on contract prices set almost a year ago.
There are now expectations that contract coking coal prices will rise over 70% in the Japanese FY starting April 1. Coal companies in the stock market will also benefit significantly from this.
MCC’s offer represents a total equity consideration of $669 million.
