An investment firm led by Water Corporation chairman Patrick O'Connor is getting into the coal game, acquiring Africa-centred Focus Coal Investments.
Xceed Capital has agreed to wholly acquire the coal explorer in exchange for 25 million Xceed shares and Focus' executive directors taking control of the XCeed board.
Xceed will also sell its subsidiary, chemical manufacturer Boron Molecular, for $1.5 million to help fund the acquisition, which will cost up to $15 million.
Focus owns a 74 per cent stake in at the Moabsvelden thermal coal project in South Africa, and has the rights to acquire the same again in a similar project nearby.
Production at Moabsvelden is expected to commence in 2012 after a mining licnese is granted and a feasibility study takes place.
At completion of the offer, hoped to be in April, Focus directors Stephen Belben and Ian Culbert will be appointed managing director and finance director of Xceed respectively.
Mr Belben is the executive director of St George Capital, of which Mr O'Connor is also a director, and was previously a partner at Ernst & Young's Perth offices for 11 years.
Mr Culbert was previously managing director of NSW-focused coal miner Tritton Resources, which was acquired by Straits Resources in 2006.
In a statement, XCeed said the deal was part of a strategy to change the company's directions and improve shareholder returns.
