CAPE TOWN -  Afrimat has made a R2.1 billion offer for Australian-listed Universal Coal as part of its diversification strategy.

The local construction minerals and mining group said a due diligence exercise would be completed. Various financing options to finance the A$0.40 offer were being considered, which might affect the share price, Afrimat’s directors said.

Afrimat’s share price gained up to 2.46 percent to R31.25 per share on the JSE on Monday morning, after the offer to purchase was published.

On Friday Afrimat directors said in a trading statement that headline earnings per share are expected to be between 216.4-234.4 cents per share for the year to February 28 2019, representing an increase of 2-30 percent over the previous year. The results are scheduled to be published on May 23, 2019.

Earlier in March this year, the Afrimat Construction Index (ACI) showed the sector firmly in the doldrums, but a third consecutive quarter of growth in the last three months of 2018 was “encouraging,” economist Roelof Botha said.