Coal of Africa Limited Lapse of Offer for Universal Coal Plc (3310E)
July 15 2016 - 8:15AM
UK Regulatory
TIDMCZA
RNS Number : 3310E
Coal of Africa Limited
15 July 2016
Lapse of Offer for Universal Coal Plc
Coal of Africa Limited (ABN 98 008 905 388) (ASX, AIM and JSE:
CZA) (CoAL) advises that its offer for the entire share capital of
Universal Coal Plc (Universal) (the Offer) as contained in CoAL's
offer document dated 21 December 2015 as supplemented (Offer
Document), has lapsed.
The offer closed at 1.00pm (London time) on 15 July 2016, with
the remaining Conditions to the Offer unfulfilled at that time.
Therefore, all contracts resulting from acceptances of the Offer by
Universal shareholders are void and of no effect.
At the Offer's scheduled close, CoAL had received acceptances
representing approximately 95.72% of Universal's issued share
capital. As a result of the lapse of the Offer CoAL now has no
voting power in Universal.
While an overwhelming majority of Universal shareholders
accepted CoAL's Offer, the CSA with Eskom at NCC has not yet been
finalised or signed. Universal has therefore not yet commenced
mining activities at NCC, at which first coal was expected to be
produced in the first half of 2016 as was envisaged in the Offer
Document.
As a result, of the continued uncertainty in finalising the CSA
and the other working capital funding opportunities, CoAL's
directors were not able to opine on the required working capital
statement on the readmission of the Consideration Shares and CoAL's
Shares to trading on AIM (Readmission). The working capital
statement, required CoAL's directors to confirm that, in their
opinion having made due and careful enquiry, the working capital
available to the Enlarged Group (being the CoAL Group as enlarged
by the Universal Group) would be sufficient for its present
requirements, that is for at least twelve months from the date of
Readmission. CoAL's directors must be able to make this working
capital statement in order to achieve Readmission of the Enlarged
Group.
Whilst CoAL is disappointed it cannot complete the Offer at this
time, it considers it important that any acquisitions be
sustainable and accretive and will continue to evaluate all
opportunities, which include CoAL making another offer for
Universal, the structure of which would need to ensure the
sustainability of the Enlarged Group going forward and be capable
of completion.
Notwithstanding the opportunities being evaluated, CoAL
continues to focus on restructuring its balance sheet, operations
and project pipeline to be better positioned to unlock shareholder
value as has been evidenced by the Soutpansberg deferred
consideration agreement and continued regulatory progress on both
Vele Colliery and Makhado Project.
Unless the context otherwise requires, capitalised words in this
notice have the same meaning given to them in the Offer
Document.
Authorised by
David Brown
Chief Executive Officer
For more information contact:
Chief Executive +27 10 003
David Brown Officer Coal of Africa 8000
Chief Financial +27 10 003
De Wet Schutte Officer Coal of Africa 8000
Investor +27 10 003
Celeste Riekert Relations Coal of Africa 8000
Endeavour Corporate +61 08 9316
Tony Bevan Company Secretary Services 9100
Company advisors:
Nominated
Matthew Armitt/Ross Adviser and Peel Hunt +44 20
Allister Broker LLP 7418 8900
Robert Philpot/Dennis Corporate +27 11
Tucker Advisor Qinisele Resources 883 6358
Financial
Jos Simson/Emily PR (United +44 20
Fenton Kingdom) Tavistock 7920 3150
Charmane Russell/Olwen Financial Russell & +27 11
Auret PR (South Associates 880 3924
Africa) or
+27 82
372 5816
Investec Bank Limited is the nominated JSE Sponsor
About CoAL:
CoAL is an AIM/ASX/JSE listed coal exploration, development and
mining company operating in South Africa. CoAL's key projects
include the Vele Colliery (coking and thermal coal), the Greater
Soutpansberg Project /MbeuYashu, including CoAL's Makhado Project
(coking and thermal coal).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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