PERTH (miningweekly.com) – Takeover target Universal Coal was one step closer to securing a competing takeover bid, announcing on Tuesday that the interested unnamed third party had completed a satisfactory due diligence.
Universal had consistently rejected a takeover offer from shareholder IchorCoal, which was offering shareholders A$0.16 a share in cash, in lieu of a possible competing offer from the unnamed third party.
The new suitor had provided the company with a written, confidential, nonbinding, indicative and conditional proposal concerning a second takeover offer to acquire all the shares in the company for A$0.25 each, along with certain convertible securities.
Universal told shareholders on Tuesday that subject to the new suitor’s board approval, the South Africa-focused coal miner could announce the identity of the suitor and the terms of a formal offer by November 26.