December 04, 2008

Xstrata Coal launches cash offer for Resource Pacific

Xstrata Coal Pty Limited announced its intention to make an all cash offer to acquire all of the issued and outstanding shares in Resource Pacific Holdings Limited for AUD 2.85 per share, valuing Resource Pacific’s issued share capital at approximately AUD 960 million. The Offer is unconditional.

The highlights of the offer are
1. Premium of 85% to the 30 day volume weighted average price1 of Resource Pacific shares up to and including 25 September 2007, the day prior to the announcement of New Hope’s takeover offer
2. Co-operation agreement with Marubeni Corporation, Resource Pacific’s largest shareholder
3. Xstrata Coal currently has a relevant interest of 15.56% in Resource Pacific shares
4. Allows Resource Pacific shareholders to realise an attractive cash value for their shares at a significant premium to New Hope’s all-share offer
5. Offer is unconditional
6. Prompt payment terms offered
7. Xstrata Coal will stand in the market to acquire shares at the Offer Price
8. Consolidates Xstrata Coal’s position in the Hunter Valley

Mr Peter Coates CEO of Xstrata Coal said that “This is a highly attractive offer for Resource Pacific shareholders, providing the immediate opportunity to realize a cash premium for their investment in a single mine operation.”

Xstrata Coal also announced that it has entered into a cooperation agreement with Marubeni Corporation, Resource Pacific’s largest shareholder. As a result, Xstrata Coal now has a relevant interest in Marubeni Corporation’s 10.28% shareholding in Resource Pacific. Together with its existing interest of 5.28% acquired by equity swap arrangements and on-market purchases, Xstrata Coal has a total relevant interest of 15.56% in Resource Pacific shares.