JOHANNESBURG (miningweekly.com) – JSE-listed junior miner Keaton Energy’s shares rose by 6.2% on Thursday, after it and Wescoal announced in a joint statement that the purchase price for Wescoal’s takeover of Keaton had been adjusted.
Subsequent to the signing of a firm intention offer letter in February, Keaton had issued a further 690 374 shares in terms of its employee ownership share schemes.
As such, Wescoal and Keaton agreed to increase the aggregate scheme consideration from R525.59-million to R526.83-million, with a resultant increase in the cash component from R350-million to R351-million and the consideration shares from 87.59-million to 87.80-million.
Upon completion of the deal during the first half of the 2018 financial year, Keaton will become a wholly-owned subsidiary of Wescoal and be delisted from the JSE.
The transaction excludes Keaton’s assets marked for disposal, namely Leeuw Mining and Exploration and Amalahle.
Wescoal’s shares also traded higher on Thursday, by 0.41%.