JSW Energy to acquire South African coal mine
16 Apr 2010
JSW Energy Ltd, a part of the JSW group, has made a firm offer to acquire a controlling stake in South African Coal Mining Holding Limited (SAMHL), for an undisclosed amount.
Under the scheme of arrangement, JSW Energy will acquire a stake in the issued ordinary share capital of the South African mining company and provide finance to reopen the closed mine, JSW said in a filing with the Bombay Stock Exchange (BSE).
In a press release issued today, South African Coal Mining Holdings Limited said it's board has received a letter from JSW offering to lend enough funds to enable it discharge its liability to The Standard Bank of South Africa (P) Limited (SBSA) and to provide new funding to reopen the mine.
JSW will also make an offer to acquire all of the issued ordinary shares of SACMH save for those held by its creditors Royal Bafokeng Capital (Pty) Limited (Royal Bafokeng) and Mainsail 55 (Pty) Ltd (Mainsail), to whom SACMH had pledged its shares.
JSW will lend to SACMH 70 million rand ($9.5 million) to enable it to discharge its liability to SBSA, the largest secured financiers of SACMH, provided that on repayment of the debt SBSA transfers to JSW its 71.8 million shares in SACMH.
The bank will then cede to JSW all the securities held by SBSA for SACMH's indebtedness (including SACMH shares pledged to SBSA by Royal Bafokeng) without any further consideration.