Johannesburg: Aim-, ASX- and JSE-listed coal junior Coal of Africa’s (CoAL’s) recommended offer to acquire fellow South Africa-focused miner Universal Coal for A$0.25 share has received acceptances from 53.20% of Universal shareholders – representative of the total number of shares in issue – thereby satisfying formerly established conditions for the offer.
CoAL stated on Thursday that it believed that positive progress had been made on the remaining conditions, which were mainly procedural in nature and could be fulfilled in a timely manner.
CoAL further extended the offer period so that the definition of the closing date in the offer document was amended to April 15, 2016. Unless the offer was withdrawn by CoAL, the closing date would not be later than 12 months after the offer date.
CoAL also entered into a subscription agreement with chemical manufacturer Haohua Energy International (HEI) and agreed to subscribe for 114 942 528 new CoAL shares at a subscription price of $0.0435 per CoAL share for an aggregate subscription amount of $5-million.
HEI currently held 462 417 579 CoAL shares, representing 24% of the company’s existing issued share capital.