South Africa – Wescoal, the JSE-listed coal miner and trader, has reconfirmed its intention to increase its black shareholding in the company to 50+1 % and late yesterday provided an update on the situation.
The Board has appointed an advisor regarding the Group’s process of moving towards a 51 % BEE structure in keeping with the resolution adopted in March last year to enable Wescoal to comply with market requirements and the dynamics of transforming South African mining.
Wescoal has received requests from certain shareholders for a shareholders meeting to be convened with regards to this. The board is currently considering this and will comply with the provisions of the Companies Act and memorandum of incorporation.
“In the interim I would like to assure shareholders, suppliers and all other stakeholders that this process has no impact on the company’s operations,” says Robinson Ramaite, chairman of Wescoal.
The board of Wescoal has also issued a statement with regards to press allegations that there are “simmering problems” and that “tempers have flared” amongst the members of the board following a possible company takeover.
The board would like to state that it remains intact and is able to function and execute its duties as required by the Companies Act.
In regard to speculation about tensions that may have arisen during the interested party offer process, the board would like to reiterate that the process was managed by independent members of the board after which the offer was withdrawn as certain conditions could not be met.
A stock exchange announcement was issued to this effect and there is no need to comment further on this matter Wescoal states.
Once a small coal trading business, Wescoal continues to transform itself, today resembling a significantly greater entity than it was in 2009 when it acquired Khanyisa, its first coal operation. 2014 has reaped great successes, thanks to the acquisition of the Elandspruit property in particular which will double the company’s annual coal output from 2 to 4 Mt by 2016.