Coal of Africa Limited UPDATE: RECOMMENDED OFFER FOR UNIVERSAL COAL PLC (6381Z)

TIDMCZA

RNS Number : 6381Z

Coal of Africa Limited

31 May 2016

UPDATE: RECOMMENDED OFFER FOR UNIVERSAL COAL PLC

31 May 2016

Coal of Africa Limited (ASX, AIM and JSE: CZA) ("CoAL") provides the following update on CoAL's recommended offer for the entire issued and to be issued share capital of Universal Coal Plc (ASX: UNV) (the "Offer").

Unless otherwise defined in this announcement, capitalised terms used in this announcement have the meaning given to them in the offer document published by CoAL on 21 December 2015 (the "Offer Document") as supplemented and varied by subsequent notices.

Signature of Subscription Agreements

CoAL is pleased to advise that it has now signed the two subscription agreements with Hengshun Zhongsheng Group Co., Ltd and Summer Trees PTE. Ltd ("the Subscribers") pursuant to which the Subscribers will subscribe for 229,885,058 and 114,942,529 CoAL Shares respectively at a price of US$0.0435 (approximately A$0.05932([1]) ) per CoAL Share, for total proceeds of US$15 million ("New Subscription Agreements")

These New Subscription Agreements will replace the YBI Subscription Agreement, which has been terminated, which was previously intended to be replaced by a US$15 million loan to be made available to CoAL by YBI as first noted in the notice of variation dated 8 April 2016.

The New Subscription Agreements are conditional upon:

   a)   the Offer having been declared by CoAL to have become unconditional in all respects; and

b) the directors of CoAL (or a duly authorised committee of CoAL directors) having approved and authorised the issue of the CoAL shares to the Subscribers and the Subscribers having received a copy of the authorising resolution.

No further shareholder approvals will be required in order to facilitate the issue of CoAL Shares to the Subscribers, noting that CoAL has been granted an extension until 3 August 2016 to issue the Shares approved at the General Meeting held on 3 March 2016.

Enquiries

 
 CoAL                                 Telephone: +27 (0)10 
                                       003 8000 
 David Brown, De Wet Schutte 
  and Celeste Riekert 
 Qinisele Resources (Proprietary)     Telephone: +27 (0)11 
  Limited (Financial Adviser to        883 6358 
  CoAL) 
 Robert Philpot and Dennis Tucker 
 Peel Hunt LLP (Nominated Adviser     Telephone: + 44 (0)20 
  and Broker to CoAL)                  7418 8900 
 Matthew Armitt and Ross Allister 
 Investec Bank Limited (JSE Sponsor   Telephone: +27 (0)11 
  for CoAL)                            286 7000 
 Robert Smith and Tanya Cesare 
 Tavistock (United Kingdom PR         Telephone: +44 20 
  Adviser to CoAL)                     7920 3150 
 Jos Simson and Emily Fenton

[1] Exchange rate AUD$1.00:USD$0.7335 as published by the Reserve Bank of Australia on 12 May 2016

This information is provided by RNS

The company news service from the London Stock Exchange

END

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May 31, 2016 02:01 ET (06:01 GMT)

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