Listed coal mining company Universal Coal Plc announced the receipt of non-binding indicative offer from Ata Resources led consortium. The offer proposes to acquire 100% of Universal Coal for all cash transaction of $0.35 per UNV share.
Ata Resources Proprietary Limited is a private entity incorporated in South Africa.
The takeover is proposed to be affected by way of scheme governed by the regulations of the United Kingdom. However, the offer does not place any certainty for the confirmation of the scheme or that the acquirer Ata Resources and the Consortium will successfully raise funds required to close the deal.
The disclosure of the possible acquisition of Universal Coal by Ata Resources led consortium was first announced by UNV on 18 September 2018, thereby witnessing a significant rise in share price and trading volume of Universal’s stock. But this non-binding indicative offer (NBIO) remains subject to UNV’s shareholders approval and subsequent delisting of the Universal Coal securities from Australian Securities Exchange.
In today’s update to the previously announced NBIO, the Independent Directors of Universal Coal suggest that this acquisition bid is in the best interest of the Universal Coal’s shareholders subject to few caveat changes as deemed fit. Prima facie it may look that Directors are just going to accept the bid but rather it could be a masterful move to trigger better offers coming into the play.
Taking the offer forward, Universal has agreed to provide an access of company’s limited information to Ata Resources for its confirmatory financial review of UNV.
Universal Coal’s share price plunged 3.125% to last trade at 0.310 on 26 September 2018. The stock has seen a performance change of attractive +93.94% over the past one year. While it most recently traded at a PE of 6.970 x with the market capitalization of $167.19 million.
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