LONDON (Alliance News) - Coal of Africa Ltd Monday said that, before completion of its offer for Universal Coal PLC, its subscription agreement with Yishun Brightrise Investment Pte Ltd will be replaced by a USD15 million loan agreement also with Yishun Brightrise.
Coal of Africa agreed an extension to its offer for Universal Coal last Friday to April 29, which it said Monday was to allow it and Yishun Brightrise time to finalise this loan agreement.
Coal of Africa is hoping to buy Universal Coal in a deal worth AUD126.4 million that would be classed as a reverse takeover under AIM listing rules. Universal Coal has recommended the offer, and authorities have given the deal the green light, with Coal of Africa on Friday saying it has received sufficient support from Universal Coal shareholders for the deal to proceed.
Shares in Coal of Africa were up 20% at 2.24 pence Monday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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