Boston, MA 10/25/2013 (wallstreetpr) – Arch Coal Inc (NYSE:ACI), is the one of the leading coal producers globally. During the year ended December 31, 2012, the company sold approximately 140.8 million tons of coal, including approximately 4.3 million tons of coal it purchased from third parties, representing roughly 14% of the 2012 United States coal supply.
Arch coal announces that it would sell off its Utah operations, which included group thermal coal mines, which was held privately. The company will generate an amount of $435 million by selling this unit as the main concern to sell this business is that company wants to concentrate on its coal project and wants to divest from its non-core assets. The company is expecting this deal to be closed in the coming quarter as FBR capital markets and Deutsche Bank are the financial advisers of the company, and Morgan Stanley is the financial advisor from the buyer side the Bowie.
Patriot coal announces the settlement on all the issues and claims with Peabody, which helped the company to remain far from chapter 11, which states bankruptcy by the end of the year. The major issue of this case was that the two companies were fighting for funding of health benefits. In this case, the major beneficiary will be Arch Coal as it will receive $5 million cash along with the $16 million as a letter of credit as the company had spun off what was acquired by Patriot.
The company declared that it has successfully completed the sale of its subsidiary, Canyon Fuel Subsidiary, as the buyer. This Bowie will pay the company $ 423 million in cash. The sale of all the non-core assets indicates that the company wants to increase their focus on the core business activities. The inflow of cash by selling the underperforming assets, would help the company to deploy cash more efficiently in their core activities or can be deployed for the acquisition of the coal block globally, which is a scarce resource and demand is high.
