Managing director Tim Hedley said Endocoal – which also appointed an independent expert ahead of a planned shareholder meeting on the proposed scheme of arrangement in February – was confident the transaction would be completed by March.
“Endocoal, in conjunction with U&D Mining, is continuing its efforts to ensure the remaining conditions outlined in the scheme implementation agreement are satisfied in a timely manner,” he said.
“The timetable has been designed to allow for sufficient time for Endocoal and U&D Mining to obtain the necessary approvals to complete.”
Yima Coal indicated to Endocoal that it had started proceedings to apply for all relevant Chinese approvals necessary to complete the transaction.
FIRB also stated it had no objections to a $4 million loan facility to Endocoal by U&D Mining.
Endocoal appointed Ernst & Young Transaction Advisory Services to provide an independent expert report that would state whether the proposed transaction was in the best interests of its shareholders.
Ernst & Young is progressing its report and also enlisted the services of Behre Dolbear Australia to provide technical input for Endocoal’s assets.
“The Endocoal board continues to support the transaction in the absence of a superior proposal and subject to Ernst & Young concluding that the transaction is in the best interests of Endocoal shareholders,” Hedley said.