Afrimat changes its mind on Universal Coal takeover

3rd July 2019

By: Marleny Arnoldi

Deputy Editor Online

     

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JSE-listed minerals and construction materials group Afrimat has decided not to pursue an acquisition of ASX-listed midtier coal mining company Universal Coal.

In April, Afrimat made a nonbinding indicative offer to buy the entire issued share capital of Universal Coal for $0.27, or A$0.40 apiece, as part of a diversification strategy.

The company in a statement on Wednesday said it was pulling its offer after a due diligence process, owing to the size and complicated nature of the transaction.

Universal’s share price fell by around 16% to A$0.25 apiece after Afrimat’s offer withdrawal.

Edited by Creamer Media Reporter

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