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CoAL in negotiations over loan agreement

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World Coal,

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.

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