St Louis, MO - Peabody Energy (NYSE: BTU) announced today that Excel Coal shareholders have approved the sale of Excel to Peabody for $9.50 per share. The purchase price totals approximately US$1.5 billion (including previously purchased shares) plus approximately US$300 million in assumed debt. Following court approval of the vote, the company anticipates financial closing of the transaction later this month.
"With the favorable shareholder vote, we look forward to completing the acquisition of one of the premier coal companies in Australia," said Peabody President and Chief Executive Officer Gregory H. Boyce. "We have worked closely with the Excel team on the integration plan for a number of months, and we look forward to combining and expanding our Australian platform to serve high-demand thermal and metallurgical coal markets at a time when the forecast for seaborne coal continues to grow."
Excel Coal is one of the largest independent coal companies in Australia. Peabody Energy is the world's largest private-sector coal company, with 2005 sales of 240 million tons of coal and $4.6 billion in revenues. Its coal products fuel approximately 10 percent of all U.S. and 3 percent of worldwide electricity.
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