Coal of Africa stock surges as board back share consolidation
The company also plans to change its name and is reviewing its dual listing
The Coal of Africa (CoAL) share price jumped more than 4% on Friday, after it said its board had recommended shareholders approve a 20-to-1 share consolidation as it continues to rationalise its balance sheet. The company is also considering the number of bourses it is listed on.The JSE-and London-listed company said it had a disproportionately large number of shares in issue due to historical equity-based capital raisings, and this was a disincentive for institutional investors to invest in CoAL as their mandates inhibited them from investing in stocks where unit prices were too low.In an update for the quarter to end-September, CoAL said a recommendation to approve a resolution changing the company’s name to MC Mining Limited would also be put to shareholders at the company’s annual general meeting on November 24 2017.CoAL has faced difficulties in re-entering the market, having faced regulatory and community resistance to its flagship Makhado project. Earlier this year it acquire...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.