CHARLESTON, W.Va. (AP) -- The Greenbrier owner Jim Justice is buying National Coal Corp. and taking it private, the Knoxville, Tenn.-based mine operator said Tuesday.
Justice has agreed to pay $1 a share, but National Coal did not specify a total price for the deal. The company had more than 8.6 million shares outstanding as of June 30, but the deal includes an unspecified number of shares that can be issued by exercising options.
The offer represents a 54 percent premium over National Coal's closing price of 65 cents a share Monday. National Coal's shares rose 32 cents, or 49.4 percent to 97 cents on the news.
Justice is making the acquisition through Ranger Energy Investments, National Coal said.
In April, Ranger paid $11.8 million to purchase a coal processing plant, two mines and other assets in east Tennessee from National Coal. In a related deal, Ranger bought $30.3 million worth of National Coal's debt as well.
"I am pleased that we were able to reach an agreement with Ranger Energy that delivers a substantial premium and fair value to our shareholders," National Coal Chief Executive Daniel Roling said in a statement.
Justice did not immediately return a call Tuesday seeking comment.
The acquisition signals a bit of a return to the coal business for Justice. He sold part of his coal interest to Russia's OAO Mechel last year, then acquired The Greenbrier resort in southeastern West Virginia for $20.1 million.
National Coal says the deal is expected to close Dec. 15, pending shareholder approval.
Justice has agreed to pay $1 a share, but National Coal did not specify a total price for the deal. The company had more than 8.6 million shares outstanding as of June 30, but the deal includes an unspecified number of shares that can be issued by exercising options.
The offer represents a 54 percent premium over National Coal's closing price of 65 cents a share Monday. National Coal's shares rose 32 cents, or 49.4 percent to 97 cents on the news.
Justice is making the acquisition through Ranger Energy Investments, National Coal said.
In April, Ranger paid $11.8 million to purchase a coal processing plant, two mines and other assets in east Tennessee from National Coal. In a related deal, Ranger bought $30.3 million worth of National Coal's debt as well.
"I am pleased that we were able to reach an agreement with Ranger Energy that delivers a substantial premium and fair value to our shareholders," National Coal Chief Executive Daniel Roling said in a statement.
Justice did not immediately return a call Tuesday seeking comment.
The acquisition signals a bit of a return to the coal business for Justice. He sold part of his coal interest to Russia's OAO Mechel last year, then acquired The Greenbrier resort in southeastern West Virginia for $20.1 million.
National Coal says the deal is expected to close Dec. 15, pending shareholder approval.
