Wescoal rallies on extended bid

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Wescoal rallies on extended bid

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Published Date: 2021-03-03 | Source: Stephen Gunnion | Author: Stephen Gunnion

Wescoal rallies on extended bid

A consortium including RBFT Investments plans to buy up to 116-million Wescoal shares due to the prospects for the coal miner.

Wescoal's shares rallied over 10% at their best yesterday after it said an open market bid by RBFT Investments (RBFTI) to buy its shares had been extended.

The coal mining company said the bid would stay open until the end of the week unless RBFTI reached its target of 116-million shares sooner than that. RBFTI is a consortium that includes the Industrial Development Corporation and Simeka Capital Holdings.

Last month, RBFTI said it and its related persons (the "Parties"') owned about 56.87% of Wescoal's shares and wanted to increase their shareholder due to the company's prospects. It said the transaction would also provide liquidity to those shareholders who wished to sell their shares. Through Nedgroup Securities, it planned to acquire the stock at R1.20 per share.

Since it started buying shares on 16 February, RBFTI said it had increased its stake in Wescoal to 64.87%.

RBFTI said the bid was an exempt partial offer in terms of the Companies Act and shouldn't be construed as a general offer to acquire the remainder of Wescoal.

Wescoal's shares closed 8.7% up at R1.25.





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