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Provision of financial assistance and further funding arrangement
WESCOAL HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 2005/006913/06)
Share code: WSL
ISIN: ZAE000069639
(“Wescoal” or “the Company”)
Provision of financial assistance and further funding arrangement
Wescoal shareholders are referred to Special Resolution Number 2 relating to the provision of
direct or indirect financial assistance in terms of Section 45 of the Companies Act, No 71 of
2008 (“the Companies Act”) to related or inter-related companies, which was approved at the
annual general meeting of Wescoal on 9 November 2016.
Further to the above, Wescoal shareholders are notified in terms of Section 45(5)(a) of the
Companies Act, that the board of directors of the Company (“the board”) passed a resolution
on 9 October 2017 (“the board resolution”) granting financial assistance to inter related
companies of Wescoal, amounting to R420 million (“the financial assistance”) in the form of
guarantees.
The financial assistance provided, as detailed above, is greater than one-tenth of 1% of
Wescoal’s net worth as at the date of the board resolution.
The board further confirms that immediately after providing the financial assistance, the
Company continues to satisfy the solvency and liquidity test as contemplated in Section 4 of
the Companies Act and that the terms and conditions of the financial assistance are fair and
reasonable to the Company.
Additionally, Wescoal is pleased to have concluded a long-term debt funding arrangement
with a local bank.
Whilst these funding arrangement strengthen the Group’s liquidity and balance sheet, it
remains moderately geared at around 30% and continues to focus on its strategic intent to
play a role as a consolidator in the junior coal producer sector and to optimise newly acquired
Keaton Energy.
17 October 2017
Sponsor
Nedbank Corporate and Investment Banking
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