Universal offer one step closer
PERTH (miningweekly.com) – South Africa-focused coal miner Universal Coal on Friday told shareholders that a possible takeover offer from a consortium of investors, led by privately held Ata Resources, was one step closer.
In September this year, Universal received a conditional, nonbinding indicative offer from Ata, of A$0.35 in cash for each Universal share.
The coal miner on Friday said that Universal had now received a binding, conditional commitment from Ata to make the offer, on behalf of the consortium, with Ata having obtained conditional commitments to fully finance the proposed transaction through a combination of debt and equity funding.
The binding offer for Universal remains conditional upon the negotiation and execution of a transaction implementation agreement between the parties.
In the meantime, Ata has told Universal that it has received irrevocable undertaking from Universal shareholders Coal Development Holding, which holds a 27.5% share in the company, and Ichor Coal, which holds a 29% share in the company, that they would be voting in favour of the proposed transaction, other than in limited circumstances.
Universal has now formed a committee of independent directors to assess the merits of the proposed transaction, with an independent expert report also expected within the next six weeks.
Shareholders have been advised not to take any action with regards to the Ata offer.
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