Western Coal is to buy Energybuild in an all share deal valuing the acquired company at £54.4 million.
Canada-based Western Coal is to buy fellow AIM-quoted miner Energybuild in an all share deal valuing the acquired company at £54.4 million.
The takeover will give shareholders 0.0833 new Western shares for every Energybuild share held, and it is expected to be completed in August, subject to shareholder approval.
The proposal represents a premium of approximately 12.9 per cent on Energybuild’s shares, based on the closing price the day before the announcement.
Western, which is also listed on the Toronto stock exchange, has operating sites in north-eastern British Columbia, Canada and West Virginia, with a regional office in the UK.
London-registered Energybuild produces anthracite coal from its Neath and Dulais Valley mining sites in South Wales.
Western was advised on the deal by Richard Hildebrand and James Lyons, corporate partners at law firm Trowers & Hamlins.
Keith Calder, CEO of Western, comments that the deal: ‘will help in developing the project faster and achieve shareholder value sooner for Western shareholders.’