PERTH– ASX-listed TerraCom has taken a 19.9% stake in South Africa-focused coal miner Universal Coal, in a deal worth A$34.6-million.
TerraCom on Wednesday said that it had acquired 104.5-million Universal securities from Coal Development Holding for A$17.3-million in cash and some 34.2-million of its own shares.
The acquisition of a substantial stake in Universal aligned with TerraCom’s ongoing corporate strategy, enabling the company to enter into an emerging market while reducing its sovereign risk profile with new investments in South Africa.
“Universal’s asset portfolio provides the company with greater geographic diversification and an expanded production footprint,” said TerraCom chairperson Wal King. “The growth achieved under the guidance of CEO Tony Weber throughout the last few years has been exceptional. TerraCom is excited to become a substantial shareholder and looks forward to being associated with Universal’s long term profitable growth.” – Miningweekly.com