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Picture: 123RF/ARTUR NYK
Picture: 123RF/ARTUR NYK

Goldway Capital Investment is proceeding with an offer for the compulsory buyout of the remaining shares it did not obtain during its successful, hostile takeover of SA-based junior coal miner MC Mining.

The off-market takeover offer was announced in February by a consortium of MC Mining’s majority shareholders, who held 64% of the company at the time.

MC Mining initially advised the remaining shareholders to not accept the offer for 16 Australian cents a share in cash, saying that the offer did not fairly reflect the value of assets held by the company.

However, the board later reluctantly advised shareholders to accept the offer when it became clear that the takeover, which is likely to see MC Mining delist, would succeed.

Goldway required 82.2% of MC Mining’s shares for a successful takeover, which it achieved by April 8 when it reported that it held 83.67% of its issued capital. Goldway’s shareholding has since increased to 93.05%.

The compulsory buyout offer, published on the JSE’s Sens news service on Wednesday, reiterates that the buyout price and the currency conversion rate — this has been set at a fixed rate of A$1/R12.25 — will be the same as the original offer. This sets the rand price per share at about R1.96. The share was trading for R1.81 on Wednesday.

The last day to trade in MC Mining shares on the JSE to participate in the buyout offer will be on June 20.

erasmusd@businesslive.co.za

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