Walter Energy, Inc., formerly Walter Industries, Inc., is a producer and exporter of metallurgical coal for the global steel industry and also produces steam coal, coal bed methane gas (natural gas), metallurgical coke and other related products. The Company operates its business through three principal business segments: Underground Mining, Surface Mining and Walter Coke. The Company's primary business, the mining and exporting of hard coking coal for the steel industry, is included in its Underground Mining segment, consisted of Jim Walter Resources, Inc. (JWR) and Blue Creek Coal Sales, Inc. In its Surface Mining segment, it also mines steam coal for sale to industrial and electric utility markets through its Taft Coal Sales, Tuscaloosa Resources and Walter Minerals subsidiaries. Through its Walter Coke segment, it manufactures furnace and foundry coke, collectively referred to as metallurgical coke. On April 17, 2009, the Company completed the spin-off of its Financing business. The company has listed in New York Stock Exchange since December 18, 1997.
Now the company is to buy Canada's Western Coal for C$3.3 billion ($3.3 billion) to create one of the largest producers of steel-making metallurgical coal.
The deal shows how surging global steel production, driven mainly by China, is stimulating M&A activity in the mining sector, with coal producers scrambling to take advantage of booming Asian demand.
Walter Energy will pay C$11.50 a share, a 56 percent premium to Western Coal's closing price on November 17, the day before Walter Energy announced its proposal.
The enlarged company will have total coal reserves of about 385 million tons and expects to produce more than 20 million tons of coal by 2012.
Under the deal, Western Coal shareholders will get about C$2.1 billion in cash and own about 14 percent of the enlarged company.
The transaction is expected to boost Walter Energy's earnings per share in the first full year after completion which is expected by the second quarter of 2011.
Walter Energy had said on November 18 that it was in talks to buy its Canadian peer and on Thursday extended the 14-day period for exclusive talks.
The completion of the deal is contingent on approvals by Canadian courts and at least two-thirds of Western Coal shareholders' votes, including Walter Energy and Audley Capital.
Other regulatory approvals, and a majority of the votes cast by Western Coal's shareholders excluding Walter Energy and Audley Capital, at a special meeting of shareholders, are also required.
Steelmaking or metallurgical coal is a key ingredient used in about 70 percent of worldwide steel production and with steel demand forecast to hit a record 1.34 billion tonnes in 2011.
"Our combined production capacity and geographic footprint leaves us extremely well positioned to benefit from favorable sector dynamics driven by increased steel production in markets such as China, India and Brazil," said Joe Leonard, interim Chief Executive of Walter Energy
Tidak ada komentar:
Posting Komentar