Business
Acquisition - Maltby Colliery
Acquisition - Maltby Colliery.
About this update from Hargreaves Services Plc
[{"type":"text","content":"\n Hargreaves Services PLC\n27 February 2007\n\n\nFor immediate release 27 February 2007\n \n\n\nAnalyst Briefing\n\n\nAn analyst briefing will be held today at the offices of Buchanan\nCommunications, 45 Moorfields, London, EC2Y 9AE at 11.15 am.\n\n\nPlease contact Diane Stewart or Catherine Breen on 0207 466 5000 to confirm\nattendance.\n\n\n HARGREAVES SERVICES PLC\n\n ('Hargreaves')\n\n\n\n £21.5m Acquisition of Maltby Colliery from UK Coal\n\n\n\nHargreaves Services plc (AIM:HSP), a leading provider of transport and support\nservices to the energy and waste sectors, is pleased to announce the acquisition\nof Maltby Colliery ('Maltby') from UK Coal PLC for a cash consideration of\n£21.5m (plus the assumption of a pension deficit of £8.6m) (the 'Acquisition').\nHargreaves also announces today in a separate release its Interim Results for\nthe six months ended 30 November 2006.\n\n\nThe consideration for the Acquisition will be funded equally between bank debt\nand by the placing of 2,370,000 new ordinary shares at a placing price of £4.69\nper share to raise £11.1 million from new and existing investors. Additionally,\n£5.6 million of existing ordinary shares has been placed on behalf of certain\nmembers of the Hargreaves management team. Application has been made for the\nshares to be admitted to AIM and Dealings in the new ordinary shares are\nexpected to commence on 1 March 2007.\n\n\nBased in South Yorkshire, Maltby Colliery has been a working mine since 1908 and\nis one of the few remaining deep coal mines in the UK. In 2006, it produced\napproximately 800,000 tonnes of coking coal. Maltby currently employs\napproximately 500 staff.\n\n\nHargreaves owns The Monckton Coke & Chemical Company Limited ('Monckton') which\nis the only independent producer of metallurgical coke in the UK, and currently\nconsumes approximately 25 per cent. of Maltby production of coking coal.\nHargreaves is the largest independent importer of coal in the United Kingdom.\n\n\nThe Acquisition is being undertaken as a fixed project to 2015, when the mine is\nscheduled for closure, and the site will be redeveloped subject to planning\npermission.\n\n\nHargreaves has recruited Alan Houghton as a full time executive with direct\nresponsibility for Maltby's operations. Alan is highly regarded in the mining\nindustry, having worked for British...