Jim Justice to buy National Coal Corp

National Coal Corp, an Appalachian coal producer, is to be bought out by a unit of Ranger Energy, a buyout company owned by Jim Justice. Shareholders in National Coal will receive $1 a share, 54 percent higher than the company’s Monday close.

(Reuters) – Appalachian coal producer National Coal Corp agreed to be acquired by a buyout company owned by Jim Justice, a businessman and operator of Appalachian coal assets, for about $8.6 million in cash.

Shareholders of National Coal will receive $1 per share, a 54 percent premium to the company’s Monday close.

Shares of the company were up 49 percent at $0.97 in morning trade Tuesday.

Upon closing of the transaction, National Coal will become a unit of Ranger Energy, the acquisition vehicle.

In April, Ranger Energy acquired certain National Coal assets for $11.8 million.

(Reporting by Vaishnavi Bala in Bangalore; Editing by Vinu Pilakkott)