18th Feb 2016 08:28
LONDON (Alliance News) - Coal of Africa Ltd Thursday said it has secured support for its takeover offer from shareholders of Universal Coal PLC holding more than a 40% stake in the company, but warned the timetable for the deal has been pushed back.
In November, Coal of Africa launched a AUD126.4 million reverse takeover offer for Australia-listed Universal Coal as the London-listed company attempts to capture immediate coal production and cash flow along with a diversified production, development and exploration base.
Universal Coal has three thermal coal and two coking coal assets, with its Kangala thermal coal mine in South Africa producing around 2.1 million tonnes of coal per year. The introduction of production into Coal of Africa's portfolio is significant as its own projects have been slow moving.
Universal Coal has recommended the offer and authorities have given the deal the green light.
On Thursday, Coal of Africa said Universal Coal shareholders with a 41.3% stake in the Australian-listed firm have accepted the offer.
However, Coal of Africa also said it has extended the closing date to March 11 from the original date of March 3, meaning the deal would not be completed until around March 21 rather than March 8 as anticipated, it said.
Coal of Africa is holding its general meeting for its own shareholders to vote on the proposed deal on March 3.
Under the terms of the offer, Universal Coal shareholders will get AUD0.20 in cash and one new Coal of Africa share for each of their existing shares. The deal values Universal Coal at around AUD126.4 million and represents a 35% premium to Universal Coal's closing price on October 30, the day prior to the talks being entered into.
Coal of Africa shares were trading up 8.8% to 2.31 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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