South African mining company, Forbes & Manhattan Coal, has settled an agreement with Riversdale Mining Limited concerning a dispute over the proposed of a 100% stake in Riversdale Holdings.
Takeover deal
In February 2013, Forbes Coal pulled out of the deal to takeover Riversdale Mining, claiming that Riversdale's Zululand Anthracite Collieries (ZAC) in South Africa was performing poorly.
Riversdale denied that the deterioration of ZAC's performance was in breach of the agreement, however said that it took Forbes Coal's actions as a rejection of the deal and insisted that the deal be terminated.
Forbes Coal disagreed that it had rejected the agreement, and said it would not be held liable for any damages suffered by Riversdale as a result of the cancellation.
Claim settlement
The claim by Forbes Coal against Riversdale Mining for the return of the Rand 45.5 million (US$ 4.2 million) deposit held in an escrow fund, and the claim by Riversdale Mining against Forbes Coal for damages in the amount of Rand 299.5 million arising from the proposed acquisition, will be settled by way of the escrow funds being shared between the two companies. Rand 19.4 million will be paid to Riversdale and the remainder to Forbes.
Edited from various sources by Katie Woodward