Any hope of a bid higher than 35 cents for UNV might be derailed...

Any hope of a bid higher than 35 cents for UNV might be derailed by a major shareholder.

The formal $183m offer from a consortium of investors led by Ata Resources, a private entity incorporated in South Africa, is conditional upon the negotiation and execution of a transaction implementation agreement between Universal and the consortium.

The formal commitment was made after Ata Resources received promises from a second major shareholder of Universal that it would accept the offer.

Coal Development Holding, which has a 27.5 per cent stake and Ichor Coal, which owns 29 per cent, have both agreed to vote in favour of the deal.

Tony Weber is of the view UNV is significantly undervalued relative to its Aussie peers because its mines are in South Africa, and is curfrently at a significant discount to what an entity generating this kind of cash would be achieving if it was operating in Australia.

Will be interesting to see what eventuates next month and whether the "major shareholders" hold sway.

Although I will show a 10% profit at 35 cents, UNV is certainly worth more than that.