Wesfarmers to sell stake in Bengalla mine
Wesfarmers said on Tuesday it will sell its 40 per cent interest in the Bengalla Joint Venture thermal coal mine project to partner New Hope Corporation Ltd for $860 million.
Wesfarmers said it would continue to benefit from earnings and cash flow generated from its stake in Bengalla until the transaction was completed, which is expected to close in the fourth quarter of 2018, the company said in a statement.
Upon completion, Wesfarmers said it also expects a pre-tax profit on the sale in the range of $670 million to $680 million, subject to certain adjustments.
The decision to sell its interest in Bengalla follows the completion of sale of Wesfarmers' Curragh coal mine in March.
The sale concludes the review of Wesfarmers' resources business started in 2016.
Wesfarmers and New Hope own respective 40 per cent stakes in Bengalla, while Taiwan's Taipower and Japan's Mitsui own 10 per cent each.
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