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Coal and Allied shareholders approve Rio, Mitsubishi deal

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Shareholders have approved a plan by Rio Tinto and Japan’s Mitsubishi to buy the remaining shares in coal miner Coal and Allied Industries.

In a meeting in Sydney on Monday, more than 99 per cent of Coal and Allied shareholders, excluding Rio Tinto, Mitsubishi and related parties, voted in favour of the acquisition.

Rio Tinto currently owns 75.7 per cent of Coal and Allied, and Mitsubishi 10.2 per cent.

Federal Court approval of the scheme is still required and a hearing is scheduled for November 30.

If approved, Coal and Allied shareholders will receive $117 per share from Rio Tinto’s bid vehicle Hunter Valley Resources.

An additional fully-franked special dividend of $8 will also be paid to shareholders.

Coal and Allied shares were steady at $124.33 at 1243 AEDT.