Power Group Online Article |  | |
20 September 2006 -- Peabody Energy has signed a binding agreement to purchase 19.99 percent of Australian coal company Excel Coal at A$9.50 per share. Peabody and Excel Coal have also agreed to modify the existing scheme of arrangement whereby Peabody will purchase the remaining outstanding shares at A$9.50 per share.
Peabody believes that the advance purchase of 19.99 percent of Excel and the modified scheme of arrangement will help to ensure a successful acquisition. Peabody has secured the necessary regulatory and third party approvals, and arranged its financing for the acquisition. The shareholder approval process under the scheme of arrangement is underway, with a shareholder meeting currently scheduled for Oct. 4, 2006.
"The combined operations of Excel and Peabody Pacific provide numerous synergies and an extensive growth platform to serve high-demand markets on five continents," said Peabody President and CEO Gregory H. Boyce. "We are well advanced in the integration process, and have continuing confidence in the potential of the combined entities to create long-term shareholder value. We look forward to working with Excel's quality people and assets as we implement our growth plans."
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