03
Nov

Peabody Energy moves to control of Macarthur Coal

Macarthur CoalMacarthur Coal is moving close to joining the long list of delisted and digested Australian resource stocks this month. The takeover bid from Peabody Energy Australia Ltd and Arcelor has had more twists and turns as Arcelor withdrew from the bid after Citic (22%) unexpectedly accepted the offer. The Citic acceptance meant Arcelor had to put up a lot more capital than anticipated. Peabody Energy is going it alone towards a 90% holding. The latest update has Peabody Energy at 75%.

Macarthur Coal was trading below $11 in June so the bid and subsequent price move has delivered a terrific boost to our investors. We sold our last parcel at $16.21. At the time of the bid, Quest was one of the larger institutional investors in Macarthur Coal with around 3 million shares.

The Australian market is running out of coal stocks! Quest has increased our stake in Whitehaven Coal during the year which also carries takeover expectations. Queenslander Newhope Coal has placed itself on the market subject to a satisfactory price. We expect there to be increased interest in the smaller Australian coal plays this year as investment dollars look for a new home.