PERTH (miningweekly.com) – Takeover target Universal Coal and suitor TerraCom have agreed to adjourn a general meeting of Universal’s shareholders while the two companies conduct a legal battle.

TerraCom has previously called for the general meeting in a bid to remove Mark Eames, Tony Weber and Henri Bonsma as directors of Universal Coal, at a date no later than April 3.

Universal subsequently launched legal proceedings in the High Court of Justice in England and Wales, claiming that the 33.5c a share unsolicited bid from TerraCom contravened certain principles of the UK City Code on Takeovers and Mergers.

Universal’s Court bid was aimed at preventing TerraCom from gaining more than a 20% interest in the company as a result of the unsolicited takeover offer.

The two firms said in a joint statement on Wednesday that while court proceedings were continuing, the general meeting would be adjourned until May 15, at which time it was anticipated that the proceedings would have been determined.

TerraCom on Wednesday noted that acceptances for the takeover offer received to date, when aggregated with the company’s existing holding in Universal, meant that the suitor had the right to exercise some 54% of the voting rights attached to Universal shares.

Following the completion of the transfer of Universal shares to TerraCom, the company now held some 52.5% of Universal.

Meanwhile, the suitor also told shareholders that it was working with the Australian Securities and Investment Commission (ASIC) after the watchdog issued an interim stop order on February 28, in relation to the takeover offer.

While the stop order was in place, no offers, issues, sales or transfers of TerraCom shares could be made under the takeover offer, meaning that acceptances received for the takeover offer, and not processed at the date of the stop order, could not be processed until the interim stop order was lifted.

TerraCom’s offer for Universal consists of 10c in cash and 0.6026 new TerraCom shares for each Universal share held.

Under the terms of the takeover offer, the closing date for the suit would automatically extend by 14 days after the interim stop order had been lifted, but would stretch no later than April 16.

TerraCom said on Wednesday that it was working with ASIC in the hopes that the stop order could be lifted as soon as possible to allow Universal security holders a fair opportunity to consider the offer.