AREC - American Resources rejects bid for carbon unit valued at $260M

2023-06-28 08:52:02 ET

American Resources ( NASDAQ: AREC ) +8.7% pre-market Wednesday after saying it received an unsolicited bid for the assets of its American Carbon metallurgical carbon division at an implied enterprise value of $260M, which included upfront cash, assumption of debt and a scaling royalty structure.

The company said it did not accept the proposal because of the duration and structure of the consideration payments, but it said it remains committed to maximizing value for shareholders including the sale, lease or expansion of production from the metallurgical carbon assets.

American Resources ( AREC ) said it remains focused on expanding production at McCoy Elkhorn and Wyoming County Coal following the closing of $45M tax exempt bond financing.

More on American Resources:

• Financial and valuation comparison to sector peers
• Earnings: Q1 GAAP loss of $0.04/share
• Stock price return: Up 48.5% YTD, up 15.5% in the past 12 months

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