Initially, SunCoke would transfer a 33% interest in its Haverhill and Middletown cokemaking facilities in Ohio to its master limited partnership.
SunCoke Energy chairman and chief executive officer Fritz Henderson said that the SunCoke Energy gain greater flexibility to evolve structure and unlock value for shareholders with the expiration of certain provisions in tax sharing agreement with Sunoco.
"The first step is to begin executing a plan to drop down our entire domestic cokemaking business to SXCP over the next few years," Henderson added.
"We believe this strategy will create significant value for shareholders directly through the proceeds received for the assets dropped down and indirectly through the increase in value of our SXCP ownership interest and higher total cash distributions paid to us, including incentive distribution rights."
"In addition, our new flexibility enables us to consider additional restructuring options for our Coal Mining business."
