U.S. mining equipment maker Joy Global Inc (JOYG.O) plans to purchase an initial 41 percent stake in International Mining Machinery Holdings Ltd (1683.HK) (IMM) for $585 million to expand in China's fast-growing coal market.TJCC Holdings Ltd, a unit of U.S. private equity firm Jordan Co LP, is selling its entire stake in IMM, which makes underground coal mining machinery. The agreement calls for Joy Global to buy 535 million IMM shares from TJCC for HK$8.50 each, a 30 percent premium over its last price of HK$6.55 on July 11. Joy Global will be required to make an offer for the remaining 59 percent of IMM once the share purchase agreement is completed. IMM posted adjusted operating earnings $90 million in fiscal 2010, on sales of $299 million. At least one estimate saw 2011 earnings growing to about $113 million.
Joy Global Inc. is a manufacturer and servicer of mining equipment for the extraction of coal and other minerals, and ores. Shares of JOYG traded higher by 1.43% or $1.36/share to $96.23. In the past year, the shares have traded as low as $53.13 and as high as $103.44. On average, 1834310 shares of JOYG exchange hands on a given day and today's volume is recorded at 1283372.
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