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Coal of Africa's takeover bid for Universal Coal lapses

Coal of AfricaLtd. or CoAL's extended takeover offer for has been called offdue to unfulfilled conditions, including the failure to finalize a coal salescontract with South African power utility Eskom.

The sales contract would have seen the company start miningat the NewClydesdale project in South Africa, and generate cash flow toprovide the combined entity sufficient working capital for at least 12 months.

CoAL had received acceptances representing about 95.72% ofUniversal Coal's issued share capital at the offer's scheduled close, and as aresult of the lapse, CoAL now has no voting power in the latter.

CoAL offered 25 Australian cents for each Universal Coalshare.

CoAL noted that it may make another play for Universal Coalat a later stage and the renewed bid will be structured "to ensure thesustainability of the enlarged group going forward and be capable ofcompletion."

"Notwithstanding the opportunities being evaluated,CoAL continues to focus on restructuring its balance sheet, operations andproject pipeline to be better positioned to unlock shareholder value as hasbeen evidenced by the Soutpansberg deferred consideration agreement andcontinued regulatory progress on both Vele Colliery and Makhado Project," CoAL said in a July 15statement.