Published: August 26, 2013
South African miner makes US$17mn bid for Australian peer with local assets.
Keaton Energy, a South African coal mining company, is bidding A$19.6mn (US$17.7mn) to buy Xceed Resources, an Australian miner with assets in South Africa.
The takeover is part of Keaton's plans to become a producer of more than 5mn tonnes of coal products per year. If successful, the deal will see Xceed delist from the Australian Securities Exchange and become a subsidiary of Johannesburg-listed Keaton.
Xceed owns a 74% stake in the Moabsvelden thermal coal project in South Africa, 3km from Keaton's existing colliery, as well as two other South African mines.
Nedbank Capital is acting as investment bank and sponsor for Keaton on the transaction.