Noble

Noble: Gloucester Coal's sh/h approves merger proposal and capital return. The new entity will have resources of some 3.4b tons and was valued at US$8-9b. Gloucester sh/h will receive A$3.15 per share and a 1-for-1 share swap in the new entity. Noble currently owns 130.8m Gloucester shares and is expected to receive approx A$412.0m (US$402.0m). Co currently has net assets of US$5.6b with net debt of US$3.1b. Yanzhou, will initially hold 78% of the new firm, Noble 13% and Gloucester’s remaining sh/h 9%. Yanzhou is required to reduce its holdings to below 70% by 31 Dec 2013. Citi issues report maintaining Buy with TP$1.68. Highlights that house will also watch out for possible return of A$338m in intercompany loans part of an A$400 debt facility granted in July 2011. Positives are that valuations are now near to global financial crisis’s low and gross margin per ton has been improving last two quarters.