UPDATE: RECOMMENDED OFFER FOR UNIVERSAL COAL PLC
31 May 2016
Coal of Africa Limited (ASX, AIM and JSE: CZA) ('CoAL') provides the following update on CoAL's recommended offer for the entire issued and to be issued share capital of Universal Coal Plc (ASX: UNV) (the 'Offer').
Unless otherwise defined in this announcement, capitalised terms used in this announcement have the meaning given to them in the offer document published by CoAL on 21 December 2015 (the 'Offer Document') as supplemented and varied by subsequent notices.
Signature of Subscription Agreements
CoAL is pleased to advise that it has now signed the two subscription agreements with Hengshun Zhongsheng Group Co., Ltd and Summer Trees PTE. Ltd ('the Subscribers') pursuant to which the Subscribers will subscribe for 229,885,058 and 114,942,529 CoAL Shares respectively at a price of US$0.0435 (approximately A$0.05932) per CoAL Share, for total proceeds of US$15 million ('New Subscription Agreements')
These New Subscription Agreements will replace the YBI Subscription Agreement, which has been terminated, which was previously intended to be replaced by a US$15 million loan to be made available to CoAL by YBI as first noted in the notice of variation dated 8 April 2016.
The New Subscription Agreements are conditional upon:
a) the Offer having been declared by CoAL to have become unconditional in all respects; and
b) the directors of CoAL (or a duly authorised committee of CoAL directors) having approved and authorised the issue of the CoAL shares to the Subscribers and the Subscribers having received a copy of the authorising resolution.
No further shareholder approvals will be required in order to facilitate the issue of CoAL Shares to the Subscribers, noting that CoAL has been granted an extension until 3 August 2016 to issue the Shares approved at the General Meeting held on 3 March 2016.
Enquiries
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CoAL
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Telephone: +27 (0)10 003 8000
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David Brown, De Wet Schutte and Celeste Riekert
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Qinisele Resources (Proprietary) Limited (Financial Adviser to CoAL)
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Telephone: +27 (0)11 883 6358
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Robert Philpot and Dennis Tucker
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Peel Hunt LLP (Nominated Adviser and Broker to CoAL)
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Telephone: + 44 (0)20 7418 8900
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Matthew Armitt and Ross Allister
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Investec Bank Limited (JSE Sponsor for CoAL)
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Telephone: +27 (0)11 286 7000
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Robert Smith and Tanya Cesare
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Tavistock (United Kingdom PR Adviser to CoAL)
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Telephone: +44 20 7920 3150
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Jos Simson and Emily Fenton
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