South African Coal Mining Holdings has received a firm offer from JSW Energy for control of its company.

It said that the offer would see JSW Energy lend funds to SACMH to enable it to discharge its liability to The Standard Bank of South Africa. It said that JSW Energy would also help to provide new funding to reopen the mine. JSW Energy will also make an offer to acquire a stake in the issued ordinary shares of SACMH, being all the shares save for those held by Royal Bafokeng Capital and Mainsail Trading.

The company said in a statement announcing the terms of the offer that SACMH will be placed on its road to recovery once it resumes mining operations during May or June 2010 and JSW will support SACMH in this regard. It is expected that SACMH will be operating the mines at full production capacity by the end of December 2010.

JSW said that its offer, if implemented could result in the lifting of SACMH's suspension by the JSE and once SACMH has been restored to full health, unlock value for share holders. Earlier this month Wescoal said that its firm intention offer to acquire SACMH had lapsed and it no longer intended to proceed with the offer.

SACMH in March said that it had received an all share offer, valued at ZAR 45.2 million from Wescoal for its entire issued share capital. In terms of the offer, Wescoal proposed acquiring all the issued shares of SACMH in exchange for the issue of 11.11 Wescoal shares for every 100 SACMH ordinary shares held. The firm intention contained, among other things, a condition precedent that the offer had to be accepted by SACMH's board by no later than the end of April 2010.

(Sourced from www.miningmx.com)