Terracom bids $175M for Universal

TERRACOM has launched a $175 million takeover bid for South African producer Universal Mines as it seeks to diversify beyond its Blair Athol mine in Queensland.
Terracom bids $175M for Universal Terracom bids $175M for Universal Terracom bids $175M for Universal Terracom bids $175M for Universal Terracom bids $175M for Universal

Terracom said it was offering Universal shareholders 33.5c per Universal share consisting of 10c cash and approximately 0.6026 new Terracom shares.

"This highly strategic transaction marks a transformational step for Terracom and Universal shareholders with the merged group providing investors with scale and exposure to a portfolio of successful operating and geographically diverse coal production assets," it said.

"The expanded production footprint and strong cash flow generation as a combined group is expected to provide an enhanced operating base to accelerate growth in the interests of all investors."

Terracom said the offer would allow both companies to continue to run successful coal operations with the improved benefit of geographic diversity and an expanded production footprint and also provide a substantial platform for future growth and development of the wider business.