March 26, 2020 / 11:36 PM / 2 days ago

Australia's TerraCom closes UK-based Universal Coal acquisition

(Reuters) - Australian coal miner TerraCom Ltd (TER.AX) said on Friday it had completed its unsolicited offer to acquire UK-based Universal Coal PLC (UNV.AX) for A$175 million (87 million pounds).

TerraCom, already the largest shareholder in Universal, said it had received 90% of acceptances related to Universal’s outstanding shares and would now acquire the rest.

Universal’s de-listing process from the Australian stock exchange will begin within the next few weeks, TerraCom added.

The Queensland-based company had offered to acquire the shares it did not own in Universal in early February, an approach that was rebuffed by Universal on the grounds it “significantly undervalued” the coal miner.

Under the cash-and-stock deal, each Universal shareholder was offered 10 cents in cash and about 0.6026 new TerraCom shares.

Australia, one of the world’s largest carbon emitters per capita, was criticised last year at the United Nation’s summit for its climate change policy.

Universal Coal was not immediately available for a comment.

Reporting by Anushka Trivedi in Bengaluru; editing by Jane Wardell

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