South African Coal Mining Holdings (SACMH) announced on Monday that it plans to delist from the JSE.
The rational for the delisting is that the coal mine operated by SACMH has been in care and maintenance for an extended period of time.
The coal produced by the mine also does not meet the requirements of the Richards Bay Coal Terminal for export, and therefore has to be blended with coal procured from other mines.
The company also said that the cost of mining coal at such a relatively small operation is more that the dollar export prices achieved for coal – consequently rendering the operation unviable.
SACMH added that it is administratively intensive and costly to maintain its listing on the JSE, noting that the volume of trade over the last few years while JSW Energy Natural Resources South Africa (JSW SA) was the majority shareholder, has been relatively insignificant.
The trading of SACMH shares had already been suspended by the JSE on 4 May 2015.
Majority shareholder JSWSA, which currently holds 76,04% of the issued shares of SACMH, intends making an offer to acquire all the remaining ordinary shares in SACMH not already held by JSW SA, from all of the remaining shareholders of SACMH, for a purchase consideration equal to 9 cents per share, subject to all the conditions precedent being fulfilled.
Should all the remaining shareholders accept the offer in respect of all the remaining shares, the maximum offer consideration will be R 13 329 712.89.
JSW SA has confirmed to SACMH that sufficient cash resources are available for the payment of the offer consideration.