Anglo-Australian mining giant Rio Tinto has announced that it has completed a 100 percent divestment of its equity holdings in Wyoming, US-based coal producer Cloud Peak Energy Inc. through a fully exercised over-allotment in connection with a recently announced secondary offering.
Rio Tinto's underwriters exercised their option to purchase 3,800,000 additional shares of Cloud Peak Energy's common stock for US$19.50 per share. The secondary offering of 25,600,000 shares and the over-allotment closed on December 21, 2010. Gross proceeds from the over-allotment were US$74.1 million, bringing the total gross proceeds from the secondary offering to US$573.3 million.
Rio Tinto continues to have certain rights under the tax receivable agreement entered into with Cloud Peak at the time of the initial public offering.