VANCOUVER — Western Coal Corp. (TSX:WTN) is offering to exchange common shares for the 45 per cent of Energybuild Group PLC that it doesn’t already own in a deal that values the U.K. company at about C$82.1 million.
Vancouver-based Western Coal would exchange 0.833 of a share from its treasury for every one share it acquires of Energybuild, which is developing the Aberpergwm mine and anthracite coal reserves in Wales.
Western Coal’s offer, announced Tuesday, would be a premium of about 12.9 per cent to the closing price of Energybuild shares of 21.25 pence as of the close of trading Monday.
Energybuild’s independent directors are unanimously in support of the offer. The offer is also supported by certain Energybuild shareholders representing about 24.1 per cent of the U.K. company’s equity not held by Western Coal.
“This proposal will assure Energybuild’s future development by giving it improved access to Western’s greater coal expertise and financial resources,” said Colin Cooke, Chairman of Energybuild in a joint statement by the companies.
Keith Calder, Western Coal’s CEO, said that Energybuild fits in with his company’s growth strategy.
“With a tremendous coal resource base in which to build Energybuild upon, we believe applying Western’s considerable technical and financial strength will help in developing the project faster and achieve shareholder value earlier for Western shareholders.”
Western Coal shares closed Monday at the Toronto Stock Exchange at $4.45, up seven cents.