Coalfield Resources has reached an agreement with the Pension Protection Fund (PPF) to acquire the lifeboat fund’s 75.1% share in Harworth Estates Property.
The company, which already owns the other 24.9% of the firm, announced today it has entered into non-binding heads of terms with the lifeboat fund to buy the share for £150m.
The PPF will receive a 25-29.9% holding in the firm and £80m in cash.
The stake in Harworth was originally transferred to UK Coal’s pension scheme in return for a £30m investment as part of a restructuring of the firm in 2012 (PP Online, 10 December).
It was transferred to the PPF in August after the company collapsed following a second restructuring (PP Online 9 July).
Coalfield said it had been working alongside the PPF to optimise the company’s business model and drive growth for the benefit of shareholders.
The PPF will receive a mixture of new ordinary company shares to be raised by an equity offering of new ordinary shares in Q1 2015 and cash.
Coalfield chairman Jonson Cox said in a statement: “In the two years since our December 2012 solvent restructuring and separation from the mining businesses of UK Coal, we have made good progress in growing the asset value of HEL and delivering the management team’s five year plan.
“The proposed transaction will give a strong platform from which to grow HEL as a developer of brownfield property and to realise value for all its stakeholders. We look forward to continuing to work with the PPF to deliver the transaction.”
Coalfield also revealed plans to change its name to Harworth Estates Group on completion of the acquisition.
Harworth Estates owns and manages 30,000 acres across 200 sites valued at around £283.7m with net assets of approximately £247.3m as of 30 June 2014.
