ICHOR Coal N.V.
ICHOR Coal N.V.: IchorCoal to acquire Universal Coal for cash
ICHOR Coal N.V. / Key word(s): Acquisition/Investment Press release 21 August 2015 IchorCoal to acquire Universal Coal for cash – IchorCoal has announced its intention to make an offer for cash to acquire Universal Coal – The offer price of A$0.16 per share values Universal Coal at approximately A$80 million – Transaction results in a material expansion of IchorCoal’s attributable production and resource base – The offer will be funded through a fully underwritten capital increase by IchorCoal Johannesburg/Berlin, 21 August 2015 – Coal producer Ichor Coal N.V. (IchorCoal) has announced its intention to make an all-cash offer to acquire the shares in ASX-listed miner Universal Coal plc that it does not already own. IchorCoal’s offer values Universal Coal at approximately A$80 million. IchorCoal’s offer is A$0.16 (16 Australian cents) per share in cash for the entire issued, and to be issued, share capital of Universal Coal. The A$0.16 offer represents a premium of 61.6% over the closing price on the ASX of A$0.099 on 10 June 2015, the last business day prior to IchorCoal’s initial approach to Universal Coal to make a cash offer, and a premium of 46.5% over the volume weighted average price on the ASX of A$0.109 per Universal Coal share over the 60 trading days prior to the date of this announcement. IchorCoal currently owns 29.99% of Universal Coal’s issued ordinary shares following the conversion of its preferred shares on 13 August 2015. The offer will be funded from the proceeds of an equity capital raising exercise, underwritten by Sapinda Invest S.à.r.l. IchorCoal is an international mining company focusing on thermal coal production in South Africa. Incorporated in the Netherlands, the company is listed on the German stock exchange with a market capitalisation of EUR273.1 million as at 20 August 2015. With attributable mineable resources of approximately 400 million tonnes of coal on 16 properties, IchorCoal has a stated long-term ambition to increase its current production of around 2.1 million tonnes per annum to 15 million tonnes per annum by 2017 through organic and acquisitive growth. “Owing to our achievements of 2014 and despite the backdrop of depressed commodity prices, IchorCoal is well on its way to reaching its medium-term objective of positioning the company not only as a successful mid-tier producer but as South Africa’s pre-eminent medium-sized coal miner,” says Nonkululeko Nyembezi-Heita, CEO of IchorCoal. “This offer provides Universal Coal shareholders with an attractive opportunity to realise, in cash and at a material premium to the current share price, their investment in a historically illiquid stock. “The proposed offer price fairly values Universal Coal’s asset base and growth pipeline, while recognising the inherent risks, time and investment required to develop its portfolio of assets.” “The premium is well within market norms for a control premium for historic equivalently sized mining transactions on the ASX, and is particularly attractive in current market conditions” says Ms Nyembezi-Heita. Universal Coal’s projects in South Africa contain over 2 billion tonnes of coal resources at three thermal coal projects and two coking coal assets. Universal Coal’s Kangala mine achieved first production in February 2014 and technical completion in December 2014. The company was recently cleared to start recommissioning work at its next key asset, New Clydesdale Colliery. Due to the delay in some of its projects and deteriorating market conditions, Universal Coal has sought a series of strategic investments to finance the development of its project portfolio. “IchorCoal continues to believe in the fundamentals of the South African thermal coal market and over the longer term, anticipates a recovery in the global seaborne market. “In the context of the current challenging market conditions, we believe that the combination of Universal Coal and IchorCoal’s existing South African coal operations provides a more robust platform to manage the uncertainty prevailing in the coal sector,” says Ms Nyembezi-Heita. The offer remains subject to certain conditions. ends About IchorCoal IchorCoal is an international mining company with a focus on thermal coal production in South Africa. Incorporated in the Netherlands, IchorCoal is listed on the German stock exchange with a market capitalisation of some EUR273.1 million. IchorCoal owns and operates its own coal resources as well as holding equity positions in various coal mining entities. Apart from its holding in Universal Coal, it also owns 45.2% in Mbuyelo Coal and controls the producing Vunene mine. IchorCoal has attributable mineable resources of approximately 400 millon tonnes of coal on 16 properties. About Universal Coal Universal Coal is a United Kingdom incorporated company focused on South African thermal coal whose securities are listed on the ASX, with a market capitalisation of approximately A$55.6 million as at 20 August 2015. Universal Coal’s projects in South Africa contain over 2 billion tonnes of coal resources at three thermal coal projects in the Witbank coalfield and two coking coal assets in the emerging Soutpansberg and Tuli coalfields. Universal Coal’s first operation, the Kangala mine, with an annual production capacity of 2.8 mtpa ROM was successfully commissioned in February 2014.
Contact Ichor Coal N.V. 2015-08-21 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
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