Coal of Africa’s (CoAL) takeover of Universal Coal appears shaky after the company said it had not satisfied the some of the outstanding conditions and would not extend the offer period beyond 15 July.
“If conditions are not all satisfied by 15 July 2016 […] the offer will lapse,” CoAL said in a statement.
As of 8 July, CoAL had not secured the additional funding pursuant to the potential working capital opportunities being progressed with third parties.
In addition, the long-term coal supply agreement with Eskom at the New Clydesdale Colliery has not yet been finalised or signed and to this end the CoAL directors are not able to give the required working capital statement on the readmission of the consideration shares and CoAL’s shares to trading on AIM.
“Universal continued to engage with Eskom on potential offtake agreements for thermal coal product from NCC and is currently finalising implementation plans to commence operations on a short-term basis,” said Universal Coal in a press release. “Universal will keep the market abreast of developments in this regard.”
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/08072016/coals-bid-for-universal-coal-teetering-2016-2001/