https://www.miningweekly.com

TerraCom confirms Universal offer

12th February 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – South Africa-focused coal miner Universal Coal has maintained its advice that shareholders not respond to an unsolicited offer from fellow-listed TerraCom, after the suitor on Wednesday lodged a formal offer document.

TerraCom on Wednesday confirmed its offer for 33.5c a share for each of the Universal shares held, consisting of 10c in cash and 0.6026 new TerraCom shares.

“TerraCom is pleased to provide the opportunity for Universal security holders to consider the offer. TerraCom believes in the benefits of a combined entity in terms of scale and exposure to a portfolio of successful operating and geographically diverse coal production assets, and continues to hold the view that the takeover is in the best interest of all security holders,” said TerraCom deputy chairperson Craig Wallace.

“Despite recent negative representations by Universal in relation to a number of its institutional investors, TerraCom values all Universal security holders, including all of the parties that signed irrevocable undertakings in relation to the offer.”

Universal has meanwhile urged shareholders not to take any action, saying that based on the closing price of TerraCom shares on Tuesday, the unsolicited offer represented only a premium of 13.4% to Universal’s last closing price on the same day.

Universal will undertake a review of the offer document, before making a recommendation to shareholders.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION