Edition:
India

Peabody And Arch To Combine U.S. Powder River Basin And Colorado Coal Assets


Wednesday, 19 Jun 2019 

June 19 (Reuters) - Arch Coal Inc ::PEABODY AND ARCH TO COMBINE U.S. PRB AND COLORADO ASSETS IN HIGHLY SYNERGISTIC JOINT VENTURE TO UNLOCK APPROXIMATELY $820 MILLION IN SYNERGIES.PEABODY ENERGY CORP - JOINT VENTURE IS EXPECTED TO UNLOCK SYNERGIES WITH A PRE-TAX NET PRESENT VALUE OF APPROXIMATELY $820 MILLION..PEABODY ENERGY CORP - AVERAGE JOINT VENTURE SYNERGIES ARE PROJECTED TO BE APPROXIMATELY $120 MILLION PER YEAR OVER INITIAL 10 YEARS..PEABODY ENERGY CORP - JOINT VENTURE WILL BE 66.5 PERCENT OWNED BY PEABODY AND 33.5 PERCENT OWNED BY ARCH..PEABODY ENERGY CORP - GOVERNANCE OF JOINT VENTURE WILL CONSIST OF A FIVE-MEMBER BOARD OF MANAGERS APPOINTED BY PEABODY AND ARCH.PEABODY ENERGY CORP - PEABODY TO SERVE AS OPERATOR OF JOINT VENTURE.PEABODY ENERGY - EACH PARTY WILL HAVE VOTING RIGHTS IN PROPORTION TO ITS OWNERSHIP PERCENTAGE, WITH CERTAIN ITEMS REQUIRING SUPERMAJORITY APPROVAL.PEABODY ENERGY CORP - AS OPERATOR, PEABODY WILL MANAGE ALL ACTIVITIES INCLUDING MARKETING OF COAL..PEABODY - PEABODY AND ARCH WILL SHARE PROFITS, CAPITAL REQUIREMENTS AND CASH DISTRIBUTIONS OF JOINT VENTURE IN PROPORTION TO OWNERSHIP PERCENTAGES.PEABODY ENERGY CORP - JOINT VENTURE WILL COMBINE PEABODY'S NORTH ANTELOPE ROCHELLE MINE (NARM) AND ARCH'S BLACK THUNDER MINE.PEABODY ENERGY CORP - PEABODY AND ARCH WILL CONTINUE TO OPERATE ASSETS INDEPENDENTLY UNTIL CLOSING OF TRANSACTION..PEABODY ENERGY CORP - UPON CLOSING, PEABODY AND ARCH WILL EACH CONTRIBUTE ITS ACTIVE POWDER RIVER BASIN AND COLORADO MINES. 

Company Quote

77.95
1.13 +1.47%
19 Aug 2019