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.