JOHANNESBURG (miningweekly.com) – TSX- and JSE-listed Forbes & Manhattan Coal on Friday said it had cancelled an acquisition agreement with Riversdale Mining after the takeover target’s Zululand Anthracite Colliery (ZAC) underperformed.
The company said in a statement that the performance of Riversdale’s 74%-owned ZAC had “deteriorated to a material extent”, which Forbes believed was a breach of certain provisions within the September acquisition agreement.
“We are disappointed that the situation has necessitated this decision, but believe that cancelling the agreement is in the best interests of all our shareholders and other stakeholders in Forbes Coal,” Forbes president and CEO Stephan Theron said.
RML denied being in breach of the agreement, saying Forbes’ retraction constituted a repudiation of the agreement.
Forbes said it would not be liable for any damages suffered as a result of the cancellation of the agreement.
“The parties have attempted to reach agreement on a mutually beneficial way forward in respect of the acquisition, but such discussions have, to date, been unsuccessful,” it added.