(Adds details from Universal’s response to TerraCom’s offer)
Feb 6 (Reuters) – Coal miner Universal Coal Plc said on Thursday that an announced buyout offer from peer TerraCom Ltd would “significantly undervalue” it.
TerraCom on Monday offered to buy the remaining shares of UK-based Universal Coal, which it does not already own, in a deal that valued the Australia-listed company at about A$175 million ($118 million).
The company has not made a formal offer and not published an offer document yet, Universal said in a statement.
TerraCom, through its unit TCIG Resources Pty Ltd, is the largest shareholder in Universal since it acquired a 19.99% stake in October last year.
The bid committee constituted by Universal to assess the TerraCom’s proposal labeled it “inadequate and incomplete”. The implied offer price does not take into account Universal’s near-term growth profile, the committee added.
The buyout proposal comes at a time when Australia, one of the world’s largest carbon emitters per capita, faces global ire for its climate change policy.
TerraCom was not immediately available for a comment.
$1 = 1.4821 Australian dollars Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Vinay Dwivedi
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