Gloucester Coal Ltd has received Foreign Investment Review Board approval for its planned acquisitions of two NSW coal companies.

Gloucester Coal released a statement on Thursday saying the review board had no objections to it acquiring 100% of the Donaldson and Monash assets. However, the company must still find funds for the USD 600 million deals.

As per report, last week it was forced to offer more than a million new shares to investors in a bookbuild following a shortfall in a retail capital raising.

Gloucester Coal largest shareholder, Hong Kong Noble Group has agreed to sell Donaldson Coal Holdings which owns three coal mines in NSW for USD 360 million in new Gloucester shares at USD 9.75 per share.

Gloucester Coal will also take on USD 225 million in debt held by Donaldson. Donaldson has an 11.6% interest in NCIG Holdings Pty Ltd which operates a new coal export terminal at the Port of Newcastle.

Gloucester Coal will also buy Monash Group from Ellemby Holdings Pty Ltd for USD 30 million in cash plus a small amount of converting Gloucester shares, subject to key milestones. Monash holds a large semi-soft coking and thermal coal development opportunity in NSW Hunter Valley.

Gloucester Coal hopes to create a leading Australian coal miner worth about USD 2 billion. It has been selling new shares to partly fund the transactions through a USD 230 million equity raising and the majority of which has come from institutional shareholders.

It said in a statement to the Australian Securities Exchange that it had raised almost USD 220 million including USD 218 million from the institutional offering.

The placement was at USD 9 per share.

(Sourced from news.smh.com.au)