STOCKS NEWS AFRICA-Coal of Africa jumps on offer from China group

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0848GMT 01Oct12 - Coal of Africa jumps on offer from China group


Johannesburg-listed shares of Coal of Africa jump 16 percent after a unit of Beijing Haohua Energy Resource Co Ltd offers to inject $100 million into the junior coal producer to help expedite the development of some of its projects.

After the deal, subject to various conditions, Haohua Energy International (HEI) will own 23.6 percent of Coal of Africa.

At 0848 GMT, Coal of Africa shares are up 16.11 percent at 2.45 rand, compared with a 0.61 percent rise in the JSE All-Share index . Coal of Africa shares lost over 18 percent in one session last week after some of the company's staff at its Mooiplaats colliery had gone on a strike over wages.

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