South Africa’s Afrimat retracts takeover bid for Universal Coal

South African mining firm Afrimat has withdrawn its offer to buy Australian-listed Universal Coal, citing the size and complexity of the transaction.

Universal, a company with coal operations in South Africa, received a bid from Afrimat in April for its entire issued share capital. Afrimat’s offer valued each Universal share at 40 Australian cents.

At the same time, Universal received a revised takeover bid from a consortium led by South African entity Ata Resources, with a cash consideration increased to 36 cents from an earlier offer of 35 cents.

However, Afrimat has retracted its superior offer given the size and complexity of the proposed transaction, the company said on Wednesday.

“The last 12 months has been a very busy period for Universal, with two separate takeover proposals being received, each of which has required the dedication of significant management time and expense,” said Universal’s CEO, Tony Weber.

“The corporate interest we’ve received is reflective of the cash generative nature of our business and strong platform we now have for further growth.

“We look forward to continuing to deliver on our business plan as an independent entity, focusing on continued growth and returns to shareholders through dividends.”