Whitehaven Coal Limited completed the acquisition of Metallurgical Coal Assets in Australia from Mitsubishi Development Pty Ltd and BHP Group Limited (ASX : BHP).
April 01, 2024
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Whitehaven Coal Limited (ASX:WHC) agreed to acquire Metallurgical Coal Assets in Australia from Mitsubishi Development Pty Ltd and BHP Group Limited (ASX : BHP) for $4.1 billion on October 18, 2023. The purchase price comprises of $2.1 billion cash on completion, $1.1 billion in cash over 3 years after completion and the potential for up to $0.9 billion in a price linked earnout payable over 3 years. The transaction is expected to be funded via a combination of cash, internal cash of $1.476 billion, a $900 million bridge facility and cashflows of Whitehaven?s enlarged business over FY2025, FY2026 and FY2027. Whitehaven Coal have agreed to pay a $100 million as termination fee. The sale is subject to the satisfaction of certain conditions, including competition and regulatory approvals. Completion is expected to occur in June 2024. Net proceeds will be used to reduce the Group?s net debt. The transaction is expected to be materially earnings accretive. As on March 8, 2024, all conditions have been satisfied. As on March 8, the transaction is scheduled to complete on April 2, 2024.
BofA acted as exclusive financial advisor to Whitehaven. Macquarie Capital (Australia) Limited acted as financial advisor to Mitsubishi Development Pty Ltd and BHP Group Limited.
Whitehaven Coal Limited (ASX:WHC) completed the acquisition of Metallurgical Coal Assets in Australia from Mitsubishi Development Pty Ltd and BHP Group Limited (ASX : BHP) on April 2, 2024. Contingent payments based on 35% revenue share to BMA, subject to average realised prices achieved by the Assets exceeding thresholds of $159/tonne in the 12 month period 12 months post completion, $134/tonne in the 12 month period 24 months post-completion and $134/tonne in the 12 month period 36 months post completion.
Whitehaven Coal Limited is an Australia-based company engaged in the production of coal. The Company is focused on the development and operation of coal mines in New South Wales and Queensland. Its segments include open-cut operations, underground operations, and coal trading and blending. Its assets include Canyon Mine, Gunnedah CHPP, Maules Creek Mine, Narrabri Mine, Narrabri Stage-3 Extension Project, Rocglen Mine, Sunnyside Mine, Tarrawonga Mine, Vickery Extension Project, Werris Creek Mine, Daunia Mine, Blackwater Mine and Winchester South Project. Its operating assets are complemented by two development assets: Vickery, near Gunnedah, and Winchester South, in Queenslandâs Bowen Basin. It produces coal using open-cut mining methods at Maules Creek, Tarrawonga, and Werris Creek and underground mining methods at Narrabri. Vickery Extension Project (Vickery) is a proposal to construct an open-cut coal mine and associated on-site infrastructure about 25 kilometers north of Gunnedah.
Whitehaven Coal Limited completed the acquisition of Metallurgical Coal Assets in Australia from Mitsubishi Development Pty Ltd and BHP Group Limited (ASX : BHP).
WHITEHAVEN COAL LIMITED 
