Holders representing the vast majority of the issued shares in Universal Coal have accepted Coal of Africa’s (CoAL) takeover offer, according to CoAL’s latest quarterly report. The offer period has been extended to 20 May.
“I’m pleased to report that CoAL has now received 93.2% acceptances from its shareholder for the potential acquisition of Universal Coal,” said CoAL’s CEO, David Brown. “The acquisition will transform CoAL into a cash generative mid-tier South African producer.”
This level of acceptances satisfies the 50% minimum acceptance condition of the office, the company said. Meanwhile, the 40% minimum loan note acceptance has also been satisfied.
On 3 March, CoAL shareholders approved the acquisition. The South African Competition Commission has also approved the deal.
The Universal acquisition will provide CoAL with a cash flow during the construction of its flagship Makhado project.
Edited by Jonathan Rowland.
