It is reported that New World Resources NV, the largest Czech producer of coking coal, said its offer for Lubelski Wegiel Bogdanka SA lapsed after the acceptance threshold of 75% of the Polish miner wasn’t met.

Mr Mike Salamon chairman of NWR in a statement distributed by the Regulatory News Service said that “Given the strong industrial and strategic logic of our offer, this transaction was always going to come down to price. The outcome further demonstrates NWR’s record of strict financial discipline.”

He added that “NWR, seeking to create Europe’s biggest coal mining company, is continuing to study opportunities in Poland and Ukraine. The company remains strongly committed to investment in its Polish projects at Debiensko and Morcinek.”

NWR said on October 5 that it was bidding for at least 75% of Poland’s Bogdanka at 100.75 zloty a share. The subscription period for the bid, which was worth USD 1.2 billion has expired.

Bogdanka’s management and shareholders, including pension funds Aviva PTE SA, PTE PZU SA, Amplico PTE SA, said earlier the price offered by NWR undervalued the company.

NWR produces coking coal for steelmaking and thermal coal for power generation. It owns four mines and two coking plants in the Czech Republic. It sells coal to the Czech unit of ArcelorMittal, the world’s largest steelmaker.

(Sourced from Bloomberg)