Tuesday, 01 Nov 2011
China’s Winsway Coking Coal Holdings Ltd and Japan’s Marubeni Corp. agreed to acquire Canadian metallurgical coal producer Grande Cache Coal Corp. for about CAD 1 billion.
Winsway and Marubeni will pay CAD 10 a share in cash, 112% more than its 20 day volume weighted average trading price. As per report “Winsway and Marubeni are offering CAD 9 a ton of coal reserves, which is more than the average of CAD 2.91 a ton for comparable North American metallurgical coal transactions and less than the CAD 17.86 a ton Walter paid for Western Coal.”
Grande Cache, which mines in west central Alberta, forecast sales of 2.2 million tons to 2.4 million tons in the year ended March 2012.
Winsway imports metallurgical coal into China and Marubeni is Japan’s fifth largest trading company.
The Grande Cache agreement includes a break fee of CAD 50 million payable by Grande Cache if the deal isn’t completed. Winsway and Marubeni will pay Cad 100 million if they scrap the deal.
The acquisition, which requires approval by two-thirds of Grande Cache shareholders and a majority of Winsway shareholders, is expected to close in February.
Deutsche Bank AG and UBS AG are advising Grande Cache and Burnet Duckworth & Palmer LLP is the company’s legal counsel. The acquirers are being advised by Toronto-Dominion Bank and law firm Osler, Hoskin & Harcourt LLP.
(Sourced from Bloomberg)
China’s Winsway Coking Coal Holdings Ltd and Japan’s Marubeni Corp. agreed to acquire Canadian metallurgical coal producer Grande Cache Coal Corp. for about CAD 1 billion.
Winsway and Marubeni will pay CAD 10 a share in cash, 112% more than its 20 day volume weighted average trading price. As per report “Winsway and Marubeni are offering CAD 9 a ton of coal reserves, which is more than the average of CAD 2.91 a ton for comparable North American metallurgical coal transactions and less than the CAD 17.86 a ton Walter paid for Western Coal.”
Grande Cache, which mines in west central Alberta, forecast sales of 2.2 million tons to 2.4 million tons in the year ended March 2012.
Winsway imports metallurgical coal into China and Marubeni is Japan’s fifth largest trading company.
The Grande Cache agreement includes a break fee of CAD 50 million payable by Grande Cache if the deal isn’t completed. Winsway and Marubeni will pay Cad 100 million if they scrap the deal.
The acquisition, which requires approval by two-thirds of Grande Cache shareholders and a majority of Winsway shareholders, is expected to close in February.
Deutsche Bank AG and UBS AG are advising Grande Cache and Burnet Duckworth & Palmer LLP is the company’s legal counsel. The acquirers are being advised by Toronto-Dominion Bank and law firm Osler, Hoskin & Harcourt LLP.
(Sourced from Bloomberg)
Posts
No comments:
Post a Comment