PERTH (miningweekly.com) – South Africa-based IchorCoal has officially launched a takeover offer for ASX-listed Universal Coal.
The A$80-million offer, which was previously labelled as "inadequate" and "opportunistic" by Universal, comprised a 16c a share cash offer for every outstanding Universal share held.
IchorCoal on Wednesday said the offer price represented a 46.5% premium over Universal’s 60-day volume weighted average price on the ASX and a 45.5% premium to the company’s closing price on August 20.
The shareholder, which already holds a 29.99% stake in Universal, argued that the cash offer allowed the remaining Universal shareholders an opportunity to realise their investment at an attractive premium, in a highly liquid share, which had not paid dividends since listing on the ASX in 2010.
Universal had previously formed a subcommittee to assess the offer, which came to the conclusion that the offer was highly conditional, inadequate and opportunistic.
The subcommittee also felt that the offer price represented a low valuation multiple, based on Universal’s existing production and ignored the value of its near-term production and longer-term development pipeline.
The offer would close on December 3.