Afrimat walks away from coal deal
With the funding burden removed, shareholders can now enjoy what should be a bumper trading period for Afrimat’s iron ore mining operations
The market reacted with some relief to news that building supplies and mining business Afrimat walked away from a takeover deal of Universal Coal.
Although it’s difficult to fault Afrimat’s acquisition strategy since listing 12 years ago, Universal would have been by far its biggest deal at a value of more than R2bn. The fact that Afrimat would have to pursue a sizeable rights offer or incur substantial borrowings to fund such a transaction was weighing on sentiment...