Continental Coal accepts offer to sell SA business for R700m

3rd November 2014

By: Leandi Kolver

Creamer Media Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – Dual-listed Continental Coal has accepted an offer to sell its 74% interest in South African subsidiary Continental Coal South Africa to a consortium led by South Africa-based fund LSP Energy for R700-million.

Continental said the offer, if completed, would leave the company debt free with excess cash reserves at its disposal and the ability to pursue new opportunities that were continually being presented to it.

The final due diligence sign-off for the transaction was expected to take place on or before November 30, with the disposal expected to be completed by January 15, 2015.

Further, with the accepted offer in place, the company would now be preparing and releasing a supplementary prospectus for its rights issue, Continental added.

Shareholders will be given the opportunity to have their funds returned from the rights issue, by way of a proposed supplementary prospectus, or shareholders who did not participate will be given an opportunity to participate.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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