Peabody Energy announced that one of its Australian subsidiaries has entered into a definitive agreement to sell Metropolitan Mine in New South Wales, Australia and its associated 16.67% interest in the Port Kembla Coal Terminal to a subsidiary of South32 Limited for $200 million in cash.
The transaction also includes a contingent value right that enables Peabody Energy to realize additional cash proceeds should future metallurgical coal prices remain in excess of an agreed forward curve for a period of approximately 12 months following completion. The sale also is expected to release Peabody Energy of approximately A$20 million in financial assurances in the form of bank guarantees and cash that will be replaced by South32 upon completion.
Peabody Energy president and C.E.O., Glenn Kellow, comments, “This sale supports our actions to strengthen the Australian portfolio, which remains core to Peabody, and is consistent with the strategy outlined in our business plan.”
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