Coal of Africa (CoAL) has said that the most recent extension to its takeover offer period for Universal Coal was to allow time to negotiate a formal loan agreement with Yishun Brightrise to provide funds for the purchase.
Under a previous agreement, Yishun Brightrise had been due to provide a US$15 million investment in exchange for an equity stake in the company. This will now be replaced with a US$15 million loan agreement. No reason was provided for the change.
Full details of the loan agreement are to be announced after it has been signed. On 8 April, CoAL said it was extending its offer period to 29 April. It had been due to close on 14 April.
CoAL and Universal Coal own a range of coal producing and developments assets in South Africa. Both are listed on the ASX with CoAL also listed in London and Johannesburg.
Edited by Jonathan Rowland.
