Singapore-Listed Noble Group Raise Stake in Gloucester Coal to 10.4 Percentadmin
Singapore-listed Noble Group increased its stake in Australian coal miner Gloucester Coal Ltd. to 10.4 percent, the Australian company said Wednesday.
Noble Group announced late Tuesday in an announcement to the Singapore Exchange it had purchased a further 4.3 million shares of the Sydney-based company to raise its holding. Noble Group said it now holds 8.2 million shares of Gloucester Coal and is the largest shareholder.
Gloucester Coal is the target of a friendly takeover from global mining giant Xstrata PLC at A$4.75 (US$4.03; euro2.99) a share.
Noble Group said it believes Xstrata’s bid undervalues Gloucester Coal.
“There has been a structural shift in coal markets which reflects higher thermal and coking coal prices,” Noble Group said in its statement.
Noble Group said it is considering its strategic options and will be seeking discussions with the board of Gloucester Coal.
Gloucester Coal shares rose 2 percent Wednesday in Australia to A$5.08.
Noble Group shares were unchanged at S$1.72 in Singapore. Noble Group is headquartered in Hong Kong.