UK Coal rejects talks on takeover
Posted by Turigck on June 18, 2008
A renewed offer for UK Coal could be made by venture capital group Alchemy Partners, it has emerged.
Alchemy confirmed it had been involved in an earlier takeover approach that was rejected by UK Coal.
The coal producer, based in Doncaster and formerly known as RJB Mining, said on 8 June it had terminated talks with a party it did not identify.
On Thursday, Alchemy said it had asked UK Coal to take part in discussions but it had been turned down.
Alchemy said in a statement: "There can be no certainty that any offer will be made and if made, there can be no certainty as to the terms of any such offer."
£51m losses
It said fundholders advised by Alchemy would provide the equity financing of any new company necessary to make an offer.
UK Coal, which owns seven UK pits, said last week's approach had been subject to pre-conditions and that sufficient clarification had not been received on a number of matters.
Its extensive property interests – valued at £174m in 2002 – are likely to be one of the main reasons for the interest in a firm which in March unveiled losses of £51.6m for its last financial year.
Chief executive Gerry Spindler is looking to lead the company back to profitability by 2006.
