HomeCoalCoAL secures funding for Universal Coal takeover

CoAL secures funding for Universal Coal takeover

JSE-listed Coal of Africa (CoAL) has secured US$3 million through a subscription agreement with M&G Investment Management, which it needs for the Universal Coal takeover.

This follows CoAL’s announcement on 26 November 2015 that it had offered $91 million to acquire the entire issued and to be issued share capital of South African coal miner Universal Coal.

M&G Investment Management has agreed to subscribe for new CoAL shares at a subscription price of US$0.0435 per CoAL share.

CoAL CEO David Brown believes that the combination of Universal’s producing assets and CoAL’s development portfolio, coupled with the excellent shareholder support ensures that the merger will create a springboard to a “new coal mining force”.

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Chantelle Kotze
Chantelle Kotze is a Johannesburg-based media professional. She is a contributor at Mining Review Africa (Clarion Events - Africa) and has created content for the media brand over the past 6 years.