Continental mulls sale of SA business
JOHANNESBURG (miningweekly.com) – Subsequent to the completion of a rights issue last month, Continental Coal has been presented with offers from third parties interested in acquiring its 74% interest in South African subsidiary Continental Coal South Africa.
The offers included proof of funds that were of a quantum that provided for the satisfaction of key debts at both the parent and subsidiary level, in accordance with negotiations that had been ongoing since the new board was appointed in February.
The company said on Friday that the offers, if accepted and completed, would leave the company with excess cash reserves at its disposal and the ability to pursue new opportunities that had been presented to it.
“The board is finalising legal advice with regards to a scenario whereby an accepted offer is announced and shareholders are then offered the opportunity to either have their funds returned from the rights issue, remain in a new raising by way of a supplementary prospectus or participate in the new raising, given the change in circumstances,” the group said in a statement.
An announcement detailing the outcome of this consideration, together with advice received, would be released by October 14.
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