Kangala Colliery in South Africa. Image: Universal Coal.
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.