Wescoal tables offer to acquire Keaton Energy for R525.5m
On Thursday, junior coal miner Wescoal tabled an offer to acquire Keaton Energy in a R525.5m deal that will be settled in cash and shares. The transaction, which is subject to regulatory and shareholder approval, will result in Keaton being delisted from the JSE. Keaton, which has Vanggatfontein Colliery in Mpumalanga as its flagship mine, has a market value of R423.39m. The Keaton board backs the deal, which represents a 45.30% premium to the 30-day volume weighted average of the Keaton share price up to February 1. "The Wescoal board and management team believe that the proposed transaction is a significant step towards realising their vision of creating a truly South African mid-tier coal producer that is majority black-owned," the company said.
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