JOHANNESBURG (miningweekly.com) – JSE-listed Coal of Africa Limited (CoAL) has secured its final financing element in the bid for South Africa-focused coal miner Universal Coal through a $3-million subscription agreement with M&G Investment Management.
CoAL had now obtained the full funding for the $91-million buy-out, with the balance paid out through existing cash reserves and through the proceeds of a previous $15-million equity investment from Yishun Brightrise at a price of $0.0435 a share.
M&G inked the equity deal with CoAL under the same terms as Yishun and at $0.0435 a CoAL share.
CoAL shareholder approval for the issue of subscription shares to M&G and Yishun would be sought at the general meeting convened to approve the acquisition.
CoAL made a $91-million offer for Universal Coal on November 26.
At the time, CEO David Brown told Mining Weekly Online that the tie-up of the two companies would be a springboard to a “new coal mining force”.
Edited by: Creamer Media Reporter
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