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- TerraCom (TER) has responded to Universal Coal’s (UNV) statement that was released this afternoon, saying it will not hesitate to defend itself
- Universal said it will bring enforcement proceedings against TerraCom after it offered to purchase the company for $175 million
- A few days after the offer, Universal Coal told its shareholders that the offer would “significantly undervalue” the company
- TerraCom also announced it sent a requisition notice to Universal Coal to remove its directors Mark Eames, Tony Weber, and Henry Bonsma
- It believes the proceedings brought by Universal Coal are relating to that notice, which have not yet been revealed to Universal’s shareholders
- On market close, TerraCom remains steady and selling shares for 27.5¢ apiece, while Universal is down 2.08 per cent, trading at 23.5¢ per share
TerraCom (TER) has responded to Universal Coal’s (UNV) statement that was released this afternoon.
Today, Universal Coal stated its intentions to bring enforcement proceedings against the company after TerraCom’s subsidiary, TCIG Resources, offered to purchase the company for $175 million.
The company said it “will not hesitate to defend itself against the proposed proceedings.”
Earlier this month, TerraCom offered to purchase the remaining shares of Universal Coal, that it does not already own, for $175 million.
A few days later, Universal Coal told its shareholders that the offer would “significantly undervalue” it.
TerraCom said it will reserve its rights to bring a legal claim against Universal and any of its Directors found to be in breach of their fiduciary duties with respect to the enforcement proceedings.
The company also announced it sent a requisition notice to Universal Coal to remove its directors Mark Eames, Tony Weber, and Henry Bonsma.
Given this, TerraCom believes the proceedings brought by Universal Coal are relating to that notice, which has not yet been revealed to Universal’s shareholders.
TerraCom believes that the original offer to Universal’s shareholders is a fair deal.
“The company believes that the Directors of Universal are preventing shareholders from realising value for their investment in the company, as they have done on at least four occasions in the past,” TerraCom told the market.
On market close, TerraCom remains steady and selling shares for 27.5¢ apiece, while Universal is down 2.08 per cent, trading at 23.5¢ per share.
