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- Resource explorer TerraCom (TER) says its takeover bid for Universal Coal (UNV) is unconditional
- Earlier this month, TerraCom offered to purchase the remaining shares in Universal that it does not own already for $175 million
- TerraCom already holds a 51 per cent of the voting rights in Universal
- Not long after the offer, Universal told its shareholders the offer would “significantly undervalue” the company
- The company lodged a requisition notice with Universal to remove three of the company’s directors
- TerraCom says it is looking forward to discussing the performance of these directors with Universal shareholders at the next general meeting
- Universal is yet to respond to the TerraCom announcement
- TerraCom remains steady on the market today, selling shares for 27¢ apiece, while Universal is down 4.35 per cent, trading at 22¢ per share
Resource explorer TerraCom (TER) has announced the Universal Coal (UNV) offer is unconditional.
Earlier this month, TerraCom offered to purchase the remaining shares of Universal, that it does not own already, for $175 million. Not long after the offer, Universal told its shareholders the offer would “significantly undervalue” it.
On Monday, Universal said it would bring in enforcement proceedings against the TerraCom following the bid. TerraCom responded soon after, saying it will not hesitate to defend itself.
This morning, TerraCom received the receipt of acceptances. With it’s already existing holding in Universal, the company has 51 per cent of voting rights.
The company welcomes the support of additional institutional Universal shareholders accepting the offer.
The ASX has already confirmed that the new TerraCom shares will be issued in connection with the offer. Therefore, TerraCom is pleased to declare the offer unconditional.
As announced earlier, the company lodged a requisition notice with Universal, to remove Mark Eames, Tony Weber and Henri Bonsma as directors of Universal.
TerraCom says it is looking forward to discussing with Universal shareholders on the performance of these directors at the next general meeting.
The company says it continues to believe this offer is at the best interest of the Universal shareholders.
“[We] are disappointed that UNV continues to attempt to frustrate our offer which, as evidenced by the acceptance levels outlined above, UNV shareholders have welcomed and are accepting,” TerraCom told the market.
TerraCom Deputy Chairman Craig Wallace is pleased with the support from the offer.
“TerraCom is delighted with the support received for the Offer, to already have achieved over 50 per cent of the UNV register within a week of the Offer opening speaks for itself,” he said.
“We look forward to welcoming the new investors to the TerraCom shareholder register and growing our businesses together,” he added.
Universal has not yet responded to this announcement.
TerraCom remains steady on the market today, selling shares for 27¢ apiece, while Universal is down 4.35 per cent, trading at 22¢ per share at 1:00 pm AEDT.
