92 Million Tons of Coal Reserves and 33,700 Acres in West Virginia Sold for $142 Million of NRP Stock
Washington, D.C., February 5, 2007 – LAWFUEL – Law Firm News – Baker & McKenzie LLP announced today that it represented Dingess-Rum Properties, Inc., a West Virginia land company, in connection with the sale of approximately 92 million tons of coal and 33,700 acres of surface and timber to Natural Resource Partners L.P. (NYSE: NRP and NYSE: NSP). In return, Dingess-Rum received 2.4 million common units of NRP. The transaction closed on January 16, 2007. At closing, the transaction value was approximately $142 million.
The transaction was the culmination of a multi-year review of strategic alternatives by Dingess-Rum. Dingess-Rum was founded in 1903 and remains closely held by the descendants of its founding families. NRP is a publicly traded master limited partnership. As a result of the transaction, Dingess-Rum’s shareholders received a more liquid security in exchange for a portion of Dingess-Rum’s assets and will benefit from the larger pool of coal assets held by, and growth potential of, NRP. Dingess-Rum, with an office in Charleston, West Virginia, continues to hold other substantial assets and investments, including mineral properties in southern West Virginia.
Baker & McKenzie’s team was led by Chris Groobey and included Washington, D.C. corporate and securities associate Pamela Dayanim, Houston tax Partner Susan Stone and Houston tax associate Michael Snider.
“We are pleased to have worked with Dingess-Rum on this very important transaction for the company, its shareholders and employees. Dingess-Rum has always been dedicated to the economic development of West Virginia and, in selling these assets to NRP, has ensured the continuing stewardship of these assets by a company with operations headquartered in West Virginia,” said Chris Groobey, a project finance Partner in Baker & McKenzie’s Washington, D.C. office. “All employees of Dingess-Rum located in Logan County are now employed by NRP and will benefit from being associated with a large and growing company. Dingess-Rum’s shareholders and their descendants, meanwhile, will benefit from having the greater diversity of assets associated with owning a significant stake in NRP.”
Campbell Woods PLLC, led by Roy F. Layman in Huntington, West Virginia, acted as corporate and West Virginia counsel to Dingess-Rum in the transaction. NRP was represented by its General Counsel Wyatt Hogan and Caroline Blitzer of the Houston office of Vinson & Elkins LLP.