Friday, 03 Jun 2011
Mongolian Mining Corp the nation’s biggest coking coal exporter is close to buying a Mongolian mine from a unit of Kerry Holdings Ltd for USD 465 million.
According to two people with knowledge of the matter, Mongolian Mining plans to pay about USD 380 million in cash and issue USD 85 million of convertible bonds. The QGX coking coal mine, bought by a unit of Kerry Holdings in 2008, is adjacent to one already owned by Mongolian Mining.
Prices for coking coal, one of two key steelmaking raw ingredients, rose to a record in the first quarter, boosting appetite for mergers and acquisitions. Rio Tinto Group in April won control of Mozambique developer Riversdale Mining Ltd. following a AUD 3.9 billion offer in December.
People said that an announcement may come as soon. Calls to Mongolian Mining and Kerry Holdings after regular business hours weren’t returned.
Mongolian Mining, based in Ulaanbaatar, raised about USD 750 million in an initial public offering in October. The company said in its IPO prospectus that it was Mongolia’s biggest exporter of coking coal in the first half of 2010. (sourced from Bloomberg)
Mongolian Mining Corp the nation’s biggest coking coal exporter is close to buying a Mongolian mine from a unit of Kerry Holdings Ltd for USD 465 million.
According to two people with knowledge of the matter, Mongolian Mining plans to pay about USD 380 million in cash and issue USD 85 million of convertible bonds. The QGX coking coal mine, bought by a unit of Kerry Holdings in 2008, is adjacent to one already owned by Mongolian Mining.
Prices for coking coal, one of two key steelmaking raw ingredients, rose to a record in the first quarter, boosting appetite for mergers and acquisitions. Rio Tinto Group in April won control of Mozambique developer Riversdale Mining Ltd. following a AUD 3.9 billion offer in December.
People said that an announcement may come as soon. Calls to Mongolian Mining and Kerry Holdings after regular business hours weren’t returned.
Mongolian Mining, based in Ulaanbaatar, raised about USD 750 million in an initial public offering in October. The company said in its IPO prospectus that it was Mongolia’s biggest exporter of coking coal in the first half of 2010. (sourced from Bloomberg)
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