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AIM-listed Western?Coal pays £54.4m for Energybuild to invest in Welsh site

WESTERN COAL, the AIM-listed company with interests in Canada and the US, has bought Energybuild, the owner of the Aberpergwm colliery in Wales, for £54.4m.

Western Coal already owns 55 per cent of its smaller AIM sibling, and will take the remainder through a scheme of arrangement which will see Energybuild shareholders receive 0.0833 shares in the merged entity for every share held.

Energybuild’s Aberpergwm site has a proven coal reserve of 6.8m tonnes and resources of 36.9m tonnes, with all its production going to the Corus steel mill at Port Talbot.

Western Coal chief executive Keith Calder said: “Acquiring 100 per cent of Energybuild fits in with our value accretive strategy. With a tremendous coal resouce base on which to build, we believe applying our considerable technical and financial strength will help develop the project faster and achieve shareholder value sooner.”

A spokesperson said employees at Energybuild could expect investment rather than redundancies.

Western Coal shares closed 22.5p higher at 310.5p.