TORONTO, ONTARIO–(Marketwired – Dec. 24, 2013) –
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Sherritt International Corporation (“Sherritt” or “the Corporation”) (TSX:S) today announced it is divesting its coal business for total consideration of $946 million.
A group led by Altius Minerals Corp., will acquire Sherritt’s entire royalty portfolio and its interest in coal development assets for cash consideration of $481 million, subject to closing adjustments.
Westmoreland Coal Company (“Westmoreland”) will acquire Sherritt’s operating coal assets, currently described as the Prairie and Mountain Operations, for total consideration of $465 million, comprised of $312 million in cash and the assumption of capital leases presently valued at $153 million, subject to closing adjustments.
“Today’s transaction to divest the coal business is the culmination of a competitive bidding process which has extended over several months. It simplifies our asset portfolio to concentrate on our core strengths, enhances our liquidity, and provides us with the opportunity to reduce our debt,” said David Pathe, Sherritt’s President and CEO. Continue Reading →