US coal miner Walter Energy launches $3.24 bln bid for Canada’s Western Coal
18 Nov 2010
Walter Energy, Inc, a US producer and exporter of metallurgical coal for the US steel industry, today launched a $3.24- billion in cash and shares takeover bid for Canadian coal miner Western Coal.
Tampa, Florida-based Walter Energy, formerly known as Walter Industries, Inc, is a leading producer of metallurgical coal and sells it mainly in the US market.
Walter Energy also produces steam coal, coal-bed methane gas, metallurgical coke, and other related products. It has high-quality coal mines in north central Alabama in the southernmost Appalachian region.
The company has annual revenues of $1.2 billion and employs approximately 2,100 people.
Vancouver, British Colombia-based Western Coal is a producer of high quality metallurgical coal from mines in northeast British Columbia, high quality metallurgical coal and compliant thermal coal from mines located in West Virginia in the US, and high quality anthracite coal in South Wales in the UK.
Under the deal, Western Coal shareholders would receive a combination of cash and Walter shares valued at C$11.50 per Western share, a premium of 55.8 per cent from Wednesday's close of $7.38 on the Toronto Stock Exchange.
