Canadian NEMI Northern Energy and Mining Inc. [TSX:NNE.A] announced that it would spend a total of about $52.6 million to buy back most of its outstanding shares and debt securities from investors.
The company was involved in The Peace River Coal Limited Partnership (PRC), a joint venture between majority owner Anglo Coal Canada Inc. (74.825% ownership) and Hillsborough Resources Limited with an affiliate of Anglo Coal Canada Inc. acting as the manager of the partnership.
In September 2011, Anglo Coal Canada Inc. bought out its two minority partners, NEMI and Hillsborough, which generated the funds for the buyback. At the time, NEMI said that it would use most of its cash in a distribution to shareholders or a buyback.
Details of the buyback were announced Nov. 18 and the results were released late Wednesday.
A total of 38,203,032 shares were tendered to NEMI’s substantial issuer bid, which offered $1.06 each for a total of 38 million shares. As a result, NEMI will pay a total of $40.3 million to buy 99.5 per cent of the shares tendered.
In addition, NEMI will pay $11.2 million to repurchase 8% convertible debentures plus accrued interest. The company had offered $117.78 per $100 in principal amount, with $10.449,000 in principal amount outstanding.
NEMI Chairman, Michael Cooney, said in the press release that after the purchase and cancellation of the shares and debentures tendered under the offer, the company would have 16.6 million shares and $330,000 in principal amount of debentures outstanding.
