Consortium led by Ata Resources makes binding commitment to acquire Universal Coal

A consortium led by private equity group Ata Resources has delivered a binding, conditional commitment to acquire the entire share listed capital of South African miner Universal Coal.

On behalf of the consortium, and through a special purpose bidding company, Ata offered a fully cash settled bid of AUS$0.35 per Universal Coal share, delisting Universal from the ASX in the process.

Another South African miner Wescoal is in advanced negotiations with Ata to join the consortium, by way of an equity contribution to BidCo, and has concluded a memorandum of understanding (MoU) with the private firm.

The binding offer remains subject to the negotiation and execution of a transaction implementation agreement between the consortium and Universal Coal.

Universal Coal has two major assets in South Africa – the Kangala facility in the Witbank coalfield of Mpumalanga province and the New Clydesdale Colliery (NCC), also in Mpumalanga Province.