Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Evergreen Energy receives $30m offer for purchase of K-Fuel business

Evergreen Energy (NYSE:EEE) reported Tuesday that it has received a bid from merchant banker Stanhill Capital Partners to acquire its clean coal technology and process business K-Fuel for $30 million.

K-Fuel is Evergreen’s patented process to improve low grade coal by applying heat and pressure to cut down moisture and boost the low-grade coal's efficiency levels.

The environmental solutions company has formed a special committee to consider the offer as well as other strategic options. It has retained Cooley LLP to serve as legal counsel and the company is in the process of engaging a financial advisor.

Stanhill is a private merchant banking company based in London, Singapore and Hong Kong, with a focus on investments in the natural resources sector. Ilyas Khan, Evergreen’s chairman and acting Chief Executive, is a substantial shareholder of Stanhill.

Khan will not be part of the special committee being formed to consider Stanhill’s offer.

The company said the offer is expressly conditioned upon completion of due diligence, negotiation of definitive documents, Evergreen shareholder approval and the final approval of Stanhill’s investment committee.

Denver, Colorado-based Evergreen Energy’s stock jumped 6.98%, to 92 cents Tuesday afternoon on the New York Stock Exchange.