Company officials extended the securities purchase agreement (SPA) initially inked October 17 that extends the deadline from December 31 to February 20, 2015.
“This agreement best positions us to execute our strategy to exit the coal business in as expeditious a manner as is reasonable, while still receiving fair value for TECO Coal,” CEO John Ramil said.
The $170 million sale will completely remove TECO from the coal mining business.
The divestment has long been the subject of mergers and acquisitions rumor, and TECO officials have made no secret about their main business focus.
A company spokeswoman told media outlets in September 2013 that the company had fielded interest in its coal business from multiple parties over several years.
“TECO Energy’s core interest is our utility business,” she said at the time. “If someone meets our value expectations on the coal company, we would consider selling it to further focus on our core businesses.”