Goldway kick-starts compulsory buyout of MC Mining

MC Mining’s Makhado Project in Limpopo. Photo: Supplied.

MC Mining’s Makhado Project in Limpopo. Photo: Supplied.

Published May 23, 2024


GOLDWAY Capital has kick-started the compulsory buyout of the remaining shares it does not currently control in MC Mining, with the South African coal miner advising of the cancellation of the admission of its shares on the London AIM market.

MC Mining, formerly Coal of Africa, mines for thermal coal in South Africa, with its Uitkomst Colliery raising output for the quarter to March 2024 by 14% on a year-on-year basis to 115 909 tons.

The US-based Goldway Capital’s compulsory buyout of MC Mining brings to an end a bitter takeover process in which the boards of the two companies had heated exchanges amid counter accusations of falsifying corporate information.

Goldway Capital said yesterday that it was intent on buying “out the remaining ordinary shares” in MC Mining.

“The buy-out offer will be on the same terms as the offer, including for the avoidance of doubt in the currency conversion rate, as announced on 8 April 2024,” it said.

“The A$/ZAR and A$/GBP exchange rates for the offer consideration of A$0.16 per MC Mining share has been fixed, based on an exchange rate of A$/ZAR 12.25425 being the mid rate as published by Nedbank Limited in South Africa at 15h45 on 5 April 2024 and A$/£ 0.52100 cross rate as of 5 April 2024.”

The offer consideration in rand was R1.96068 per MC Mining share and in £0.08336 in British pound, it added.

The board of MC Mining initially opposed the takeover but Goldway swayed other shareholders in the company to accept its offer.

MC Mining yesterday notified shareholders of the cancellation of the admission of its shares to trading on AIM in line with listing rules.

“The AIM cancellation is expected to take place on 19 June 2024 and, accordingly, the final day of trading on AIM of the ordinary shares will be 18 June 2024,” said MC Mining.

Goldway had announced in some of its bidding statements for MC mining that in the event that its offer was successfully, it would proceed to exercise the general compulsory acquisition rights over all the ordinary shares it did not own.

Goldway had additionally announced its intention to delist the ordinary shares of MC mining from the Australian Securities Exchange and JSE although there has been no formal announcement effecting commencement of the delisting.

“It is currently expected that following the AIM cancellation becoming effective, the ordinary shares will continue to be listed and traded on the ASX and JSE,” explained MC mining.

“In light of this, there is no current intention for the Company to provide a matched bargain facility following the AIM cancellation.”

In March, the board of MC Mining accused the Goldway Capital of releasing misleading information in a bid to sway shareholders in favour of its acquisition move.

At the time, MCM was considering various financing opportunities for the company’s assets, including alternatives to equity funding, which would not involve any dilution to shareholders.