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Excel shareholders give go-ahead for sale to Peabody

Excel shareholders give go-ahead for sale to Peabody

Shareholders for Australian coal producer Excel Coal Ltd. have approved the sale of the company to St. Louis-based Peabody Energy Corp., Peabody officials said Wednesday.
The deal, announced in July, calls for Peabody to pay $1.5 billion (euro1.2 billion), which includes previously purchased shares. In addition, Peabody will assume about $300 million (euro236.5 million) in debt.
Following regulatory approval, Peabody officials expect the deal to close later this month.
Peabody shares rose 95 cents, or 2.7 percent, to $36.20 in trading on the New York Stock Exchange, still near the low end of the 52-week range of $32.94 to $76.29.
"We have worked closely with the Excel team on the integration plan for a number of months, and we look forward to combining and expanding our Australian platform to serve high-demand thermal and metallurgical coal markets at a time when the forecast for seaborne coal continues to grow," said Gregory H. Boyce, Peabody's president and chief executive officer.
Peabody is the world's largest private-sector coal company, selling 240 million tons of coal last year and generating revenue of $4.6 billion. Peabody coal fuels about 10 percent of all U.S. electricity, and 3 percent of worldwide electricity.
Excel, based in Sydney, is one of the largest independent coal companies in Australia. The company did not respond to a request for comment.
In announcing the purchase in July, Boyce said the move was part of the company's strategy to expand in high-growth global markets. Australia produces nearly one third of the world's coal exports, Peabody officials said.
Peabody already produces 9 million tons of coal annually in Queensland; Excel produced about 5.6 million tons of coal in 2005, with expectations of up to 15 million tons in 2007.
Peabody said it expects the acquisition to add to earnings per share and cash flow next year.
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On the Net:
http://www.excelcoal.com.au
http://www.peabodyenergy.com


Updated : 2021-05-08 21:55 GMT+08:00