Coalfield announced yesterday that it had agreed terms with the board of the pension protection fund to pay £150m for 730,674,465 new shares in Haworth. The firm is planning to raise gross proceeds of £115m through the placing on the public market, which will be underwritten by Investec.
Coalfield, which was previously known as UK Coal, split its operating business into two different units, property and mining, in 2012. It also gave up 75 per cent of the property business to the trustees of the mining business pension fund to address a deficit. The coal business went under, and has nothing to do with Coalfields. The pension fund will come on board as a 25 per cent investor.
Coalfields was forced to suspend its shares ahead of this transaction, as it is classified as a reverse takeover under stock exchange rules.
Jonson Cox, chairman of Coalfield Resources said the deal would “complete the transformation of the company to a specialist brownfield property developer”.
“We will be in a strong position to take full advantage of our proven skills in the property and regeneration markets and to deliver value,” he added.
“I would like to thank our existing and new shareholders for their support in achieving an important milestone for the business.”
BEHIND THE DEAL
CHRIS SIM | INVESTEC
Investec acted as financial adviser and broker to Coalfield Resources. Alongside Sim, his team of Jeremy Ellis, David Anderson, and Symmie Swi were instrumental in bringing the deal to market.
1 Chris Sim is a director at Investec, who mainly focuses on the natural resources sector. Before joining his current employer in 2012 he worked at Evolution, and has also worked at BZW
2 In 2013 Sim advised engineering company Kentz on its acquisition of oil and gas services firm Valerus
3 Outside of work Sim enjoys playing golf and supporting the All Blacks, although he would not share any World Cup predictions with City A.M.