Coal of Africa secures funding for Universal Coal deal

Mining group Coal of Africa has secured financing for its bid for South Africa-focused coal miner Universal Coal.

The London-listed company said it has agreed a $3m subscription deal with M&G Investment Management and the proposed $91m buy-out offer is now fully funded, via existing cash resources and through the proceeds of a $15m investment from Yishun Brightrise.

Coal said it will now seek shareholder approval for the issue of subscription shares to M&G and Yishun.

Coal shares were down 1.22% to 2.62p at 1014 GMT on Monday.