BHP to sell stake in metallurgical coal JV to Stanmore for up to $1.35 bln
Adds details on deal
Nov 8 (Reuters) - Global miner BHP Group Ltd BHP.AX signed a deal on Monday to sell its stake in BHP Mitsui Coal (BMC), a metallurgical coal joint venture in Queensland, to Stanmore Resources Ltd SMR.AX for up to $1.35 billion, the companies said.
Stanmore, which is majority-owned by Singapore-based thermal coal explorer Golden Energy and Resources Ltd GOLD.SI, agreed to acquire BHP's 80% stake in BHP Mitsui Coal, which owns and operates two open-cut metallurgical coal mines in the Bowen Basin.
The remaining stake in the joint venture is owned by Japan's Mitsui & Co Ltd 8031.T.
Stanmore will pay $1.1 billion on completion of the sale and an additional $100 million six months after completion. The companies added there is a potential for up to $150 million in a price-linked earnout, payable in 2024.
Stanmore, which has a market capitalisation of $207.1 million, according to data from Eikon, said it intends to fund the acquisition with a $625 million debt facility and a $600 million equity raising. (https://bit.ly/2ZZpgzh)
BHP will continue to operate BMC until completion and work with Stanmore during the ownership transition, the miner said in a separate statement.
(Reporting by Harish Sridharan; Editing by Peter Cooney)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.