Afrimat’s share price increased up to 5.8 percent to R33.60 following the announcement, before closing at R33.55. The price rise also far outstripped more than 3 percent the increase in the construction and materials index at the same time, although Afrimat is a major component of the index.
In April, Afrimat first announced its offer to buy Universal Coal, which also has operations in South Africa.
It’s A$0.40 (R3.95) per share (R2.1 billion) bid represented a rival bid at the time. Ata Resources had also made a cash offer for Universal at A$0.35-0.36 per share.
Universal, which also supplies coal to Eskom, reported an 80 percent increase in earnings before interest tax, depreciation and amortisation (Ebitda) in the six month to February 28, and its management said at time that they expected the strong performance would continue in the second half.