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16.0¢ universal coal plc

TER already owns 47.6% of UNV... So a special dividend would...

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webbby

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17/02/20

14:46

Post #: 42976187
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Originally posted by skoonzy: ↑

Apart from a white knight coming in to make a better offer than TER do you think we could see a poison pill defence?

One defence I've been reading about is called a flip in defence where a company can do a rights issue at a substantial discount for existing shareholders.

the other possibilities I was thinking of were:

1. Pay a large special dividend.
2. Sell UNV assets to another company that *is* protected by UK or AU takeover laws and issue shares in that company to existing holders.

Im not sure if these would work though because the board is already compromised and not sure if they're legal or feasible.

just throwing some ideas out there.

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TER already owns 47.6% of UNV... So a special dividend would just reduce the company's cash balance making the TO cheaper, and 47.6% of that dividend amount would go to TER anyway... Who would then turnaround and buy more of UNV with it?

UNV Price at posting: 23.5¢ Sentiment: None Disclosure: Not Held
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