Continental Coal studying offers for South African subsidiary

ContinentalContinental Coal Limited said it has been presented with offers from third parties interested in acquiring its 74% interest in South African subsidiary Continental Coal Limited SA following the completion of the Rights Issue.



The company’s Executive Director, Peter Landau revealed that the offers include proof of funds and are also of a quantum which provides for the satisfaction of key debts at both the parent and 74% subsidiary level (namely ABSA and EDF) in accordance with negotiations that have been ongoing since the new Board was appointed in February 2014.

“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 have been presented to it,” Landau said.

“Currently 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 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 which some Shareholders may want to participate in as opposed to the previous Rights Issue.”

It is expected that an announcement detailing the outcome of this consideration, together with advice received, will be released to the ASX on or before Tuesday 14 October 2014.

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