Mining giant Rio Tinto (ASX:RIO) expects to receive at least US$741 million ($806.7 million) from today’s IPO of coal-mining spinoff Cloud Peak Energy, the company announced.
The company will raise US$434 million from sale of part of its stake in Cloud Peak as part of the transaction, but expects to maintain an interest of up to 48%.
“The successful pricing of Cloud Peak’s debt offering and its fully subscribed IPO has proved that the IPO route was the best option for divesting these assets, Rio Tinto CFO Guy Elliot said.
Rio Tinto has announced asset sales worth a combined US$8.3 billion since February 2008, as part of a streamlining process.
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