Coal of Africa (CoAL) has said that the most recent extension to its takeover offer period for Universal Coal was to allow time to negotiate a formal loan agreement with Yishun Brightrise to provide funds for the purchase.
Under a previous agreement, Yishun Brightrise had been due to provide a US$15 million investment in exchange for an equity stake in the company. This will now be replaced with a US$15 million loan agreement. No reason was provided for the change.
Full details of the loan agreement are to be announced after it has been signed. On 8 April, CoAL said it was extending its offer period to 29 April. It had been due to close on 14 April.
CoAL and Universal Coal own a range of coal producing and developments assets in South Africa. Both are listed on the ASX with CoAL also listed in London and Johannesburg.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/11042016/coal-in-negotiations-over-loan-agreement-2016-555/