backLONDON, October 1, 2015 — King & Spalding is representing international mining company IchorCoal on its approximately A$80.9 million (£37.4 million) takeover bid for Australia-listed Universal Coal.
South African-based IchorCoal announced on September 30 its offer at A$0.16 (£0.07) a share, valuing Universal Coal’s entire issued ordinary share capital at approximately A$80.9 million (£37.4 million). IchorCoal is currently a 29.99% shareholder in Universal Coal.
The offer will be fully funded by IchorCoal through a capital increase that is fully underwritten by Sapinda Invest. A formal recommendation from the Universal Coal Board has not been sought, and the conditions to the offer are customary for a transaction of this nature. The first closing date of the offer is December 3, 2015.
IchorCoal is an international mining company with a focus on thermal coal production in South Africa. Incorporated in the Netherlands, IchorCoal is listed on the German stock exchange with a market capitalisation of some €273.1 million (£200.6 million). Universal Coal is a UK-incorporated company focused on South African thermal coal, whose securities are listed on the ASX, with a market capitalisation of approximately A$55.6 million (£25.7 million).
A team from King & Spalding London is advising IchorCoal on the matter, led by corporate partner William Charnley and including senior associate Ilan Kotkis. The firm previously advised IchorCoal on the A$24.5 million (£13.75 million) purchase of the 29.9 percent stake of Universal Coal in September 2014.
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