American Resources Rejects $260M Unsolicited Bid For American Carbon

American Resources Corp AREC revealed that it received and rejected an unsolicited bid for the assets of its metallurgical carbon division, American Carbon.

The proposal included upfront cash, assumption of debt, and a scaling royalty structure totaling an implied enterprise value of ~$260 million.

The unsolicited bid included $12 million in cash over the first six months, debt assumption, and a structured royalty stream with an implied enterprise value of up to $260 million over twelve years.

AREC did not accept the proposal due to the duration and structure of the consideration payments.

Mark Jensen, Chairman and CEO of American Resources, stated, "Given the strength and position of our metallurgical carbon assets at McCoy Elkhorn and Wyoming County, especially now with the closing of the $45 million tax-exempt bond, we remain focused on expanding production over the next two years through the production of high vol and mid vol metallurgical carbon."

Price Action: AREC shares are trading higher by 0.54% at $1.84 on the last check Wednesday.