Johannesburg, South Africa — 14 June 2013 – Chandler Coal “’ a wholly-owned subsidiary and the trading arm of JSE-listed Wescoal “’ has made an offer to acquire an unnamed coal trading business from a third party for R79 million.
Revealing this here, Wescoal CEO Andre Boje said the new business was being bought to increase the group’s exposure to the coal trading market. Fin24 reports that he declined to reveal that name of the company Wescoal was buying, but indicated that the purchase would more than double the company’s domestic trading activities.
Wescoal’s trading arm Chandler is a coal supplier to the Southern African domestic market with offices and depots in Gauteng and the Eastern and Western Cape.
The acquisition is conditional on the completion of legal agreements‚ the legal and financial due diligence investigation into the business, and on Chandler being able to secure funding for the acquisition.
It is also conditional to Competition Commission approval.
Shareholders will be notified once the final agreements have been signed and will be kept up to date on progress with the acquisition‚ Wescoal said.
Source: Fin24. For more information, click here.