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(Sharecast News) - North American metallurgical coal miner Bens Creek announced on Friday that its largest shareholder MBU Capital Group has sold 119,218,394 existing shares to Avani Resources.
The AIM-traded firm said the transaction gave Avani ownership of 29.86% of its existing shares, with the transaction executed on 10 May at a price of 18p per share.
It described Avani as a private, Singapore-based limited company dealing primarily in the physical trading of raw materials for steel and power production.
Avani supplies metallurgical coal to major markets such as India and China, and sources products from various coking coal exporting regions including Australia, Africa, the United States, Canada, China, and Indonesia.
Following the transaction, MBU would continue to hold 94,944,813 shares, representing 23.78% of Bens Creek's issued share capital.
Mohammed Iqbal, MBU's ultimate beneficial owner, would also maintain ownership of 3,333,336 shares, equal to 0.83% of the current issued share capital.
Bens Creek's board said it had entered into a relationship agreement with Avani, to ensure the company was managed for the benefit of all shareholders, and independently of the new shareholder.
Avani would be entitled to appoint one director to the board, subject to appropriate due diligence by the nominated adviser, and also had the right to participate in any fundraising activities by the company on a pro rata basis.
The MBU concert party group, including CEO Adam Wilson and former chief financial officer Raju Haldankar, would hold 37.21% of the firm's ordinary issued share capital after the transaction.
"We are delighted to welcome Avani as a shareholder - the arrival of a global commodity trading group, which is the largest importer of metallurgical coal into India, on our share register is further confirmation of the appeal of the Bens Creek coal brand and testament to the underlying quality of our product," said chief executive officer Adam Wilson.
"We are very much looking forward to working with our new shareholder, and we are sure that this is the start of what will be a burgeoning relationship.
"The skills and expertise that they bring with them are sure to be invaluable as we build the business."
At 1045 BST, shares in Bens Creek Group were up 10.34% at 20.69p.
Reporting by Josh White for Sharecast.com.
