UK Coal sells share of marketing arm

UK COAL has off-loaded its 50% interest in coal marketing firm Coal4Energy to its joint venture partner Hargreaves Services for a cash consideration of £9 million ($US12.77 million).
UK Coal sells share of marketing arm UK Coal sells share of marketing arm UK Coal sells share of marketing arm UK Coal sells share of marketing arm UK Coal sells share of marketing arm

 

Blair Price

The sale is expected to yield some £7 million in net profit to UK Coal, with the company saying proceeds will be used to reduce borrowings and fund investment.

“This is a good deal for both parties,” UK Coal chief executive Jon Lloyd said.

“Coal4Energy is an attractive business; but it is not core for us, and its future prospects will continue unaffected.

“For us, the disposal price is attractive, we continue to supply the coal, and we reinforce our ability to invest in our core mining business."

UK Coal does not expect the sale to have a significant impact on its operations and also entered into a five-year agreement to continue supplying 250,000 tonnes per annum of coal to Coal4Energy.

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