PERTH (miningweekly.com) – The South African Competition Commission has approved ASX-listed Coal of Africa’s (CoAL) bid for fellow coal miner Universal Coal.
In November this year, CoAL formally launched a A$126.4-million takeover bid for Universal Coal, rivaling an offer from Universal shareholder IchorCoal.
CoAL is offering 20c in cash and one of its own shares, or subject to eligibility under applicable securities laws, a nonconverting secured loan note worth 25c each for each share held in Universal. Eligible shareholders could also elect to receive a combination of cash and share consideration and loan notes.
Restricted Universal shareholders would not be entitled to participate in the cash and share offer, but would instead be entitled to receive 25c a share in cash for their holding in Universal, or a non-converting secured loan note to the same value.
CoAL CEO David Brown said on Thursday that the approval from the South African Competition Commission was a positive step towards successfully concluding the merger between the two South Africa-focused miners.
The board of Universal has recommended that shareholders accept the CoAL offer.
Edited by: Creamer Media Reporter
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