UK Coal eyes £350 million merger offer
10 Mar 2010
Britain's biggest coal miner, UK Coal Plc is believed to have received a £350 million ($523.7 million) merger proposal from Hargreaves Services Plc, a leading provider of energy and transportation services, the Guardian reported yesterday.
Although, UK Coal said in a statement Tuesday that it is not aware of any cash offer from any source, the troubled miner confirmed, without naming the party, that it has received a merger proposal that could address the volatile performance of the company's deep mines.
UK Coal emphasised that the proposal is ''highly conditional and at a very preliminary stage'' and no view can be expressed as to whether a transaction will result.
Doncaster, Yorkshire-based UK Coal supplies around 15 per cent of the country's coal requirement, equivalent to about 5 per cent of its energy needs by operating four deep mines in central and northern England and five surface mines. The company has a workforce of around 3,170.
Apart from coal mining, the company has substantial property interests, owning approximately 43,500 acres (17,600 hectares) of land which is valued at around £382 million (June 2008).
UK Coal owns a power generation business utilising coal seam gas from the mines, and also has interest in wind energy through a strategic collaboration agreement with Peel Energy.