CoAL CEO David Brown said: “The approval is a positive step towards successfully concluding the merger between CoAL and Universal.”
The board of Universal Coal is recommending shareholders accept CoAL offer which equates to 25c per share.
The CoAL Board believes that the Offer is compelling for both CoAL and Universal shareholders.
“The acquisition of Universal will provide CoAL with immediate coal production and cash flow as well as a diversified portfolio of production, development and exploration projects with expected synergies to the existing CoAL business,” it said in its offer document.
“Successful completion of the offer will create a balanced and focused South African coal miner.”