On November 30, Czech-based leading hard coal and coke producer New World Resources (NWR) announced the negative result of its all-cash offer to acquire all shares of Polish coal producer Lubelski Wegiel Bogdanka SA.
According to a company statement, the offer subscription period for Bogdanka shareholders closed on November 29, 2010. The acceptance threshold of 75 percent of Bogdanka's issued share capital was not met and the offer has therefore lapsed.
As SteelOrbis previously reported, the bid offered for Bogdanka, which was formerly owned by the state and privatized last year, is Zlotys 100.75 ($35.3) per share, a 13 percent premium over Bogdanka's closing price on October 4.
Mike Salamon, NWR's executive chairman, said, "NWR continues to examine a range of interesting business development opportunities in Poland and Ukraine. Meanwhile, our commitment to Poland and to investing in our existing Polish projects at Debiensko and Morcinek remains as strong as ever."
The company's two development projects in southern Poland, Debiensko and Morcinek, are overseen by its wholly-owned Polish subsidiary NWR KARBONIA Sp. z o.o.
NWR is investing €25 million in the execution of a detailed development schedule for its Debiensko project, which is making good progress and is expected to break ground during the course of 2011. This initial investment is part of the €350-400 million NWR is planning to invest over the next five years to open the Debiensko mine, which is expected to create up to 2,500 new jobs in Poland.