IchorCoal questions new Universal offer
PERTH (miningweekly.com) – The directors of IchorCoal have called on the shareholders of takeover target Universal Coal to accept its cash offer, saying a tangible alternative offer was not yet on the cards.
Universal Coal earlier this month announced that it had been approached by an unnamed third party, which 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.
The new offer compared with the A$0.16 a share being offered by IchorCoal, which already held a 29.9% stake in Universal.
Universal told shareholders at the time that the unnamed third party's proposal provided the makings of a formal offer, subject to the satisfaction of certain conditions, which included the unanimous recommendation of Universal directors, the formalising of financing arrangements by the suitor and the completion of a short due diligence, which was already ongoing.
However, IchorCoal on Monday said the new offer price, in addition to being nonbinding, indicative and conditional, was still subject to the completion of the due diligence, as well as the formalising of financing arrangements.
“IchorCoal, which is the only party with an offer which is compliant with laws in relevant jurisdictions and is capable of acceptance by security holders believes it is in the best interest of security holders that the potential bidder be named and that it should be made to ‘put up or shut up’ in terms of the proposal,” the company said in a statement.
IchorCoal has called on the Universal board to release the latest proposal to security holders to allow appropriate consideration to be given to the credibility of the offering party, and the likelihood of the offer progressing.
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