Ac­qui­si­tions an op­tion af­ter em­pow­er­ment deal

Financial Mail - Investors Monthly - - Analysis -

es­coal’s BEE deal not only brings in cash and helps it to se­cure an Eskom coal sup­ply agree­ment for its Eland­spruit col­liery, but it also puts other com­pa­nies seek­ing to meet Eskom’s BEE re­quire­ments into its sights.

In an­nounc­ing the deal, Wescoal said it would use the R178.1m cash in­jec­tion from the

Wshare is­sue to ac­quire “iden­ti­fied listed min­ing com­pa­nies”. At least three ju­nior coal com­pa­nies have been try­ing to sign long-term coal sup­ply agree­ments with Eskom: Univer­sal Coal, for its New Cly­des­dale col­liery; Re­source Gen­er­a­tion, for its Boikara­belo mine; and Water­berg Coal Com­pany, for its Water­berg mine.

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