PERTH (miningweekly.com) – The board of ASX-listed Universal Coal has urged shareholders to sit tight as the company awaits a possible takeover offer from a consortium of investors, headed by South Africa’s Ata Resources.
Universal in December last year struck a non-solicitation agreement with the special purpose bidding company, which had proposed to acquire Universal through a cash consideration of A$35c a share.
Under the non-solicitation agreement, the companies agreed that no acquisition would be made until February 15.
Universal said that the consortium has reportedly ‘made progress’ with the satisfaction of certain conditions precedent to the proposed transaction, with a firm offer expected by the end of February. However, the company noted that there was no certainty that the takeover offer would be made, or if made, would proceed.
If an offer is made, it would remain subject to an independent expert report, as well as board and shareholder approval.