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Coalspur Mines (TSX:CPT,ASX:CPL) has entered a definitive agreement with KC Euroholdings whereby KCE will acquire all outstanding shares of the company for approximately $15 million.
Coalspur Mines (TSX:CPT,ASX:CPL) has entered a definitive agreement with KC Euroholdings whereby KCE will acquire all outstanding shares of the company for approximately $15 million.
As quoted in the press release:
The Consideration represents a 44% premium over the closing price of the Company’s ordinary shares on the Australian Securities Exchange on 24 February and a 53% premium based on the volume weighted average price of the ordinary shares over the 60 days prior to this announcement.
KCE is the parent company of Kameron Collieries ULC, the owner of the Donkin coal mine in Nova Scotia, Canada and is an affiliate of the Cline Group LLC (“Cline”), a major coal producer in the United States. KCE will fund the acquisition from internal cash sources.
Coalspur president and CEO, Gill Winckler, said:
After running a comprehensive, global process, the Company is pleased to enter into this agreement with KCE. Despite the challenging environment for thermal coal exporters globally, and limited capital market access for single asset developers of thermal coal projects, we have managed to run a competitive process and secured a positive outcome for all stakeholders. The agreement with KCE is the best option for our shareholders in the context of the Company’s upcoming obligation to repay its debts with EIG Global Energy Partners (“EIG”) and Borrowdale Park S.A. (“Borrowdale”). Cline is an industry leader with the technical capability and financial capacity to bring Vista into production.
Click here to read the Coalspur Mines (TSX:CPT,ASX:CPL) press release