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Universal bid hits majority acceptance

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World Coal,

Universal Coal shareholders representing 53.2% of the company’s shares have now accepted Coal of Africa’s (CoAL) takeover bid, according to a press announcement from CoAL. Universal Coal is an ASX-listed coal mining company with a number of producing and development assets in South Africa.

CoAL’s takeover bid also received approval from its own shareholders at a recent general meeting, clearing the way the bid to continue. The general meeting also approved the issuing of shares to Yishun Brightside Investment and M&G Investment Management, funds from which will be used to fund the acquisition of Universal Coal.

The offer is still subject to various other conditions. CoAL has now extended the offer period by a month to 15 April in order to “allow sufficient time to receive further offer acceptances and for the remaining conditions to be satisfied.”

“CoAL is of the view that good progress has been made on the remaining conditions, which are mainly procedural in their nature, and that they can be fulfilled in a timely matter,” the company said.

The company also said that it had entered into a subscription agreement with Haohua Energy International (Hong Kong) Resource Co. (HEI), a subsidiary of Shanghai-listed coal producer, Beijing Haohua Energy Resource Co., under which HEI will purchase US$5 million of new CoAL shares. The funds will be used to provide additional funding for CoAL’s corporate activities and obligations.

The HEI share purchase is conditional upon the offer for Universal Coal meeting its conditions and the approval of Australia’s Foreign Investment Review Board. HEI currently owns 24% of CoAL.

Listed in London, Sydney and Johannesburg, CoAL is a coal exploration, development and mining company with assets in South Africa. Its key projects include the Vele cal mine, which produces both thermal and metallurgical coal and the Greater Soutpansberg Project/MbeuYashu, which includes the company’s flagship Makhado metallurgical and thermal coal project.

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