Rio Tinto sells stake in US miner Cloud

first_img Rio Tinto sells stake in US miner Cloud KCS-content Thursday 16 December 2010 8:04 pm whatsapp whatsapp RIO Tinto sold the majority of its stake in US coal miner Cloud Peak Energy yesterday for $499m (£320m).After divesting 25.6m shares at $19.50 per share, London-listed Rio will be left with a 6.2 per cent stake in Cloud. However, this remaining stake may also be sold through an over-allotment option if demand for the shares is high. This would generate a further $74.1m. The transaction is expected to close on 21 December.Rio kept a 48 per cent stake when it spun off Cloud in November 2009 as part of its initial public offering (IPO). “The pricing of the secondary offering demonstrates another successful outcome of our overall divestment strategy,” said Guy Elliott, chief financial officer at Rio.“With the proceeds from the Cloud Peak Energy transactions and the sale of Jacobs Ranch, the total gross proceeds for the divestment of the majority of Rio Tinto Energy America will be at least $2bn,” he added.Credit Suisse, JP Morgan and Morgan Stanley are acting as joint book-running managers on the offering.Rio, the world’s third-largest mining group by market capitalisation, has been selling its assets since February 2008 in an attempt to pay down debt after commodity markets collapsed in 2008 following its purchase of Canadian aluminium group Alcan.Total proceeds from the divestment of its US coal unit, Energy America, comprising Cloud Peak and the separate sale of Jacob’s Ranch, would total at least $2bn, Rio said. Rio’s shares closed 0.6 per cent lower yesterday at 4,405.5p. center_img More From Our Partners Native American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.org980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.com Show Comments ▼ Share by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBeMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesElite HeraldExperts Discover Girl Born From Two Different SpeciesElite Heraldmoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.com Tags: NULLlast_img

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