PERTH (miningweekly.com) – ASX-listed TerraCom’s unsolicited bid for South Africa-focused coal miner Universal Coal has continued to gain traction, with TerraCom announcing on Wednesday that it held voting rights to over 60% of Universal’s shares.

Universal earlier this week released an independent expert assessment of TerraCom’s 33.5c-a-share offer for Universal, which consists of 10c in cash and 0.6026 new TerraCom shares for each Universal share held. The independent expert declared that the offer was neither fair nor reasonable, with Universal maintaining that shareholders should reject the offer.

TerraCom on Wednesday raised concerns about the release of the independent expert’s report at such a late stage, effectively seven days before the closing of the offer.

TerraCom also shot down speculation that it would increase its bid for Universal, saying it had no intention to make a further offer for Universal shares once the offer period had closed.

“As a team we can’t hide our disappointment with the approach taken by the Universal bid committee and its financial advisor in relation to the offer. The TerraCom board is made up of experienced coal investors with extensive ASX board experience, and as such TerraCom has approached the offer with a view to making a combined company with strong operating cash flows to continue to expand the combined group’s geographical diversification,” said TerraCom deputy chairperson Craig Ransley.

“The challenges faced during this offer have been testing, however, the TerraCom board is determined to work in the best interest of TerraCom and Universal shareholders to see the offer through to its successful completion.”

Ransley also said that any attempt by Universal and its directors to suspend voting rights would be met with the appropriate injunctions, with the company reserving the right to a legal claim against Universal and any of its directors or advisers found to be in breach of their fiduciary duties with respect to the offer process.