July 14 (Bloomberg) -- Joy Global Inc., the maker of P&H and Joy mining equipment, agreed to acquire China’s International Mining Machinery Holdings Ltd. to add devices used in underground coal extraction.
Private-equity firm Jordan Co. will get about HK$4.54 billion ($583.6 million) for its 534.8 million shares, or 41 percent, of International Mining, Milwaukee-based Joy said today in a statement. The HK$8.50 a share Joy is paying is 30 percent more than International Mining’s July 11 closing price in Hong Kong. The shares have been suspended since then.
Following Chinese antitrust approval of the sale, Joy will be required under the Hong Kong Takeovers Code to make an offer for the rest of the company.
International Mining makes shearers, which cut coal from the coal face, and underground excavating and tunneling machines. China is the largest coal producer. Thermal coal at the Australian port of Newcastle, the benchmark price for Asia, has climbed 26 percent to $121.45 a metric ton in the past year, according to McCloskey data.
The acquisition may be Joy’s biggest, topping its $1.1 billion purchase of LeTourneau Technologies Inc. from Rowan Cos. in June, data compiled by Bloomberg show. The takeover of LeTourneau added drilling rigs with retractable legs to a portfolio that includes excavators, shovels and mining equipment such as conveyors and roof supports.
Joy rose $3.49, or 3.7 percent, to $98.36 as of 9:58 a.m. New York in Nasdaq Stock Market trading. International Mining, which closed at HK$6.55 on July 11 in Hong Kong, has advanced 87 percent in the past year.
--Editors: Simon Casey, Jessica Resnick-Ault.
To contact the reporters on this story: Shruti Singh in Chicago at firstname.lastname@example.org.
To contact the editor responsible for this story: Simon Casey at email@example.com.