Rio and Mitsubishi to mop up rest of Coal & Allied

8th Aug 2011 07:03

Mining giant Rio Tinto and Japanese trading house Mitsubishi Corporation plan to mop up the rest of the shares in Australian Stock Exchange-listed miner Coal & Allied that they do not already own.The Australian company's shareholders are being offered A$122 for each of their shares and will also be allowed to retain the recently announced dividend of A$1.20.Rio Tinto, through a wholly-owned subsidiary, is Coal & Allied's largest shareholder, currently holding 75.71% of Coal & Allied shares. Mitsubishi Development, a subsidiary of Mitsubishi Corporation, currently holds 10.20 per cent of Coal & Allied shares.Perpetual Limited, the largest institutional shareholder of Coal & Allied, has indicated that it is supportive of the Rio and Mitsubishi proposal in the absence of a superior proposal emerging.--jh