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Eversheds advises Coalfield Resources on £150 million reverse takeover and associated fundraising

  • United Kingdom

    03-03-2015

    Law firm Eversheds has advised Coalfield Resources Plc on its acquisition of 75.1% of the shares in Harworth Estates Property Group Ltd (“Harworth Estates”) that it does not already own from the Board of the Pension Protection Fund (“PPF”).

    Harworth Estates is one of the largest property and regeneration businesses across the East Midlands, Yorkshire and the North of England, owning and/or managing a diversified portfolio of approximately 27,000 acres across some 200 sites valued at approximately £298.5 million, with net assets valuing approximately £248.6 million as at 31 December 2014.

    Coalfield Resources currently holds a 24.9% stake in Harworth Estates, and has now agreed to acquire the remaining shares in Harworth Estate for a total consideration of £150 million. The consideration will be satisfied by a cash payment of approximately £97m and the issuance of new shares in Coalfield Resources to the PPF. A firm placing and placing and open offer will raise gross proceeds of approximately £115 million which will be used to satisfy the cash payment due to the PPF, to provide additional working capital of approximately £13.6m and financial flexibility to fund the growth strategy of the company.

    Upon completion of the Acquisition, Coalfield Resources proposes to change its name to Harworth Group, to properly reflect the company's underlying operations.

    The Eversheds team was led by Partner Amanda Partland, assisted by Principal Associate Sarah Turner, Senior Associate Jonathan Pollard and Associate Maxine Burton.

    Amanda commented:

    “We have advised Coalfield Resources Plc on a number of strategic matters since 2013 and it is a pleasure to have advised the company upon this transformational acquisition and fundraising. We look forward to working with the company on the next stage of its journey.”

    Coalfield Chairman Jonson Cox commented:

    "We are delighted to announce this transaction with the Pension Protection Fund. It re-establishes under single ownership the property business of Harworth Estates and we welcome the PPF as a 25% investor. It will complete the transformation of the company to a specialist brownfield property company. As our legal advisers, Eversheds provided a pro-active, holistic and efficient service, allowing the deal to sign in a timely and coordinated manner.”

    This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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