Murray Energy To Acquire Controlling Interest In Foresight Energy, FEGP

(RTTNews) - Murray Energy Corp. and Foresight Energy GP LLC or FEGP said Murray and Foresight Reserves, LP, the current owner of FEGP, have entered into a definitive agreement for Murray to acquire a controlling interest in Foresight Energy LP (FELP) and FEGP, to create a premier coal mining company.

The deal is expected to lead to the control of over 9 billion tons of coal reserves, creating one of the leading coal companies in the world.

Following the closing, Christopher Cline, the founder of Foresight Energy, will remain a significant investor in Foresight Energy, maintaining a 22.5 percent equity interest in FEGP and about 35 percent interest in FELP, and will be actively involved as a member of the Board of Directors of that company.

This new business combination is expected to lead to further synergies, in turn, leading to even lower mining costs and safer operations. It will provide for future growth of the companies through future drop-downs of other assets into the public partnership.