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Tue, Jun 29, 2010 - Page 10 News List

Coal group plans IPO for £25 million

REUTERS , LONDON

Scottish Resources Group Plc, the UK’s largest surface coal mining group, plans to list on the London stock market and raise £25 million (US$37.43 million) to refinance a mine site acquisition and strengthen its balance sheet.

The offer, expected to value the group at more than £220 million pounds, will include the sale of new shares as well as shares by existing owners, the company said yesterday.

Palmaris Capital Plc, which holds 16.1 percent of Scottish Resources Group (SRG) said it planned to sell most or all of its shares in the initial public offering (IPO).

“Scottish Resources Group has the scale, asset base and stakeholder relationships to maximize growth opportunities,” chief executive Don Nicolson said.

The firm has nine operating surface coal mine sites in Scotland, which produced 3.4 million tonnes of coal in the year to March 27, up 12.3 per cent.

SRG, which accounted for a fifth of total UK coal production last year, has reserves and resources of 52.3 million tonnes.

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