Murray Energy Corporation and Foresight Reserves, LP have announced that they have completed the transaction whereby Murray Energy has acquired a significant economic interest in Foresight Energy GP LLC and Foresight Energy. This is a transformative transaction for both Murray Energy and Foresight Energy, which will position these companies for growth and for continued safe, low-cost coal production, utilising the longwall mining method.
In connection with this transaction, Murray Energy paid Foresight Reserves a cash consideration of approximately US$1.37 billion and acquired:
- a 34% voting interest in FEGP, with 77.5% of the incentive distribution rights;
- approximately 50% of the limited partner interest in FELP, including all of the outstanding subordinated units held by Foresight Reserves; and
- access to certain other coal handling, transportation and transloading facilities.
Mr. Christopher Cline, the founder of Foresight Energy, will maintain a 66% voting interest in FEGP and an approximate 36% economic interest in FELP. Mr. Cline will remain actively involved as chairman of the Board of Directors of FEGP and will also join the Board of Directors of Murray Energy. Mr. Robert E. Murray will remain the Chairman, President and Chief Executive Officer of Murray Energy. Mr. Robert D. Moore, will remain the Executive Vice President, Chief Financial Officer, and Chief Operating Officer of Murray Energy, and will become the Chief Executive Officer of Foresight Energy and join its Board of Directors.
Adapted from press release by Joseph Green
Read the article online at: https://www.worldcoal.com/coal/17042015/murray-energy-foresight-transaction-2185/