Coal of Africa is continuing to evaluate opportunities to acquire a cash-generating concern after its takeover of Universal Coal lapsed in July after certain conditions remained unfulfilled at the closure date.
“The lapse of the Universal offer is disappointing to both parties involved,” said CoAL’s CEO David Brown. “But it’s crucial for any acquisition made by the company to be sustainable and accretive.”
Brown said the company continued to look at takeover prospects to provide cash flow during the construction period of the Makhado metallurgical coal project in South Africa’s Soutpansberg Coalfield.
The start for construction work has now been pushed back into 2017, the company said in its activities report. When fully online, the Makhado mine is targeting production of 5.5 million tpy.
The company did not rule out taking another shot at Universal: “The company is currently evaluating various opportunities to acquire a cash generating concern, including the possibility of a revised offer for Universal Coal,” CoAL said.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/09082016/coal-still-on-the-look-out-for-acquisitions-2016-2185/