Terracom makes Universal Coal acquisition compulsory

TerraCom has tightened its hold on Universal Coal as it moves to
acquire all of the shares it does not already own in the company.

After
receiving more than 92 per cent of Universal Coal shareholders’ votes
on the takeover bid, TerraCom is entitled to proceed with a compulsory
acquisition.

Should the remaining Universal Coal shareholders not
exercise their sell-out right by June, TerraCom would acquire them on
the same terms of its takeover offer.

TerraCom is urging
shareholders to exercise their sell-out rights as soon as possible due
to postal delays caused by coronavirus.

“If you exercise your
sell-out right before 30 June, it should enable you to receive your
consideration more promptly than under the compulsory acquisition
procedure,” TerraCom stated in an ASX announcement.

“If the
exercise of your sell-out right cannot be processed prior to 30 June,
your shares will be compulsorily acquired for the same consideration.”

Universal Coal in February sought legal action against TerraCom’s unsolicited takeover offer.

This
was to ensure all Universal Coal shareholders were given equal
opportunity to realise the full value of their investment in the
company.

Universal Coal has four thermal coal mines in South
Africa: the Kangala, New Clydesdale and the Ubuntu collieries as well as
the North Block Complex.

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