BHP has completed the sale of its 80% interest in BHP Mitsui Coal (BMC) to Stanmore SMC Holdings Pty Ltd, a wholly owned entity of Stanmore Resources Ltd.
Stanmore Resources has paid US$1.1 billion cash consideration at completion plus a preliminary completion adjustment of approximately US$200 million for working capital. US$100 million cash remains payable to BHP in six months on 3 November 2022, with potential for an additional amount of up to US$150 million in a price-linked earnout payable to BHP in the 2024 calendar year. The total cash consideration for the transaction will be up to US$1.35 billion plus the final completion adjustment amount.
Stanmore Resources is an Australian Securities Exchange listed business with operations in Queensland’s Bowen Basin. It has committed to oversee and operate BMC in compliance with industry best practice in relation to safety and environmental performance, as well as regulatory, community, and workforce engagement.
Read the article online at: https://www.worldcoal.com/handling/09052022/bhp-completes-divestment-of-its-bmc-interest/