A proposed Scheme of Arrangement between the two companies is subject to approval by Chinese regulatory bodies and then the Federal Court of Australia after it was approved by Endocoal shareholders on February 28.
A hearing before the court to approve the scheme was originally scheduled for today, but will be pushed out to April 25 because of delays by Chinese regulators, blamed by U&D Mining on the change of leadership.
“U&D Mining continues to make representations and meet with the relevant Chinese governmental officials in order to secure all of the relevant China approvals,” it advised the Endocoal board.
“U&D Mining has also kept these officials fully informed of other conditions precedent that have been satisfied under the Scheme Implementation Agreement.
“The change of leadership currently underway in China which affects all levels of government has delayed the timeliness of the usual approval process for transaction of this nature.
“Under the circumstances, U&D Mining believes they have taken all reasonable steps and exercised their best endeavours to facilitate the obtaining of all the China approvals.”
U&D Mining anticipates hearing from the state-owned Assets Supervision and Administration Commission (SASAC) in April following the change of senior personnel and leadership within SASAC.
It hopes approvals from the Ministry of Commerce of the People’s Republic of China, the National Development and Reform Commission of China and the State Administration of Foreign Exchange of China will follow.
U&D Mining has until April 25to obtain the Chinese regulatory approvals. If they have not been received by that date, Endocoal may terminate the scheme agreement unless U&D Mining requests a two month extension.
“Endocoal will continue to work with U&D Mining to ensure that the Chinese approvals are received in a timely manner,” the company said.
“The Endocoal board has no reason to believe that the Chinese regulatory approvals will not be forthcoming and therefore continues to unanimously support the proposed scheme, in the absence of a superior proposal.”
