The sales agreement does not provide for an upfront purchase payment. There might be a contingent consideration of $US60 million if certain coal benchmark prices reached certain levels over the next five years.
“TECO Coal was an important component of TECO Energy’s business mix since the 1970s, contributing strong earnings and cash flow for many years [and] we appreciate the dedicated team members at TECO Coal and the contributions they made to [our] success,” TECO CEO John Ramil said.
“This transaction completes the process of returning TECO Energy to a mix of regulated electric and gas utility businesses.”
Teco Energy will keep certain personnel related liabilities, which include a fully funded pension liability and severance agreements.
All other TECO Coal liabilities were transferred to Cambrian Coal in the transaction.
