Afrimat pulls takeover bid for Universal Coal

Citing the size and complexity of the transaction.
Shares of Universal fell as much as 16.4% to a near one-year low of A$0.255 after the withdrawal of Afrimat's takeover offer. Picture: Supplied

South African open pit mining firm Afrimat has withdrawn its offer to buy Australian-listed Universal Coal, given the size and complexity of the transaction, it said on Wednesday.

In April Afrimat bid for Universal, a company with operations in South Africa, for 40 Australian cents ($0.2798) per share as part of its diversification strategy.

At that time Universal, which also supplies coal to state-owned power utility Eskom, had also received a revised takeover offer from a consortium led by South African entity Ata Resources, with a cash consideration lifted to 36 cents from earlier offer of 35 cents.

“Following a thorough due diligence process and extensive consideration Afrimat’s board and management has decided not to proceed with the acquisition given the size and nature of the transaction,” Afrimat said in a statement.

Shares of Universal fell as much as 16.4% to a near one-year low of A$0.255 after the withdrawal of Afrimat’s takeover offer. At 0600 GMT they were down 6.56%.

COMMENTS   0

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: