[ET Net News Agency, 19 November 2014] Winsway Enterprises (01733) said it agreed to
sell to Up Energy Development (00307) 42.74% of all the issued and outstanding shares in
the capital of Grande Cache Coal Corporation (GCC) for US$1.
Upon completion, Winsway will hold a 17.26% interest in the total issued share capital
of GCC and a 17.254% partnership interest in Grande Cache Coal LP.
GCC is engaged in the production and sales of premium hard coking coal, which was
categorised as a discontinued operation in the consolidated statement of profit or loss
and the assets and liabilities of which were classified as a disposal group held for sale.
In response to the bearish outlook for the coal market, Winsway has after careful
consideration decided to reduce its dependence on coal and to diversify into services for
other bulk commodities. Although these efforts have not yet resulted in significant
earnings, the company is confident that the proposed new business model will enable it to
better utilise its logistics resources and contribute to its earnings in the near future.
Trading in shares of Winsway will be resumed this morning. (HL)