UMC 0.00% $1.30 united minerals corporation nl

assets?

  1. 21 Posts.
    A lot has been posted on this forum since Friday's announcement so apologies if the following observations have been dealt with ( " Magix66 referred to the "other assets" briefly on the 16 October ).
    The release by BHP states " UMC has agreed to a restructure of the operations and disposal of certain assets so that on the Effective Date UMC only holds the assets relating to the Railway Deposit ".
    In effect, BHP is only acquiring the Railway Deposit because UMC will not have any other assets ( including meaningful cash ---- cash reserves on the Effective Date only need to be in excess of "nil" ie the Company is not bankrupt ).
    One could ask the questiion " Why didn't BHP simply buy the Railway-related assets ( specific tenements ) for $204 M cash ? ". The answer may well be " for taxation reasons".
    More importantly, if on the Effective Date all BHP acquires is a company with just one asset ( Railway ---- plus the escrowed phosphate shares ) precisely what happens to the " other assets " of UMC( including the cash reserves ) ?
    This is a question for the UMC Board. It would seem that those assets are never the property of BHP because on the Effective Date, they are no longer part of UMC.
    Are those assets ( as owned by the current shareholders ) to be spun off into a new or existing exploration vehicle on behalf of the current shareholders ? Or sold " on the cheap" in order to clear the decks by the Effective Date ?
    It would appear that there could be an opportunity for UMC to realise more value for current shareholders than the $204M out of this proposed "takeover". If that is the case, one could ask why the UMC directors did not clarify this point on Friday including something along the lines " a Data Room will be set up to facilitate the sale of the 'other assets' following which the cash proceeds plus existing cash will be distributed to the pre- Effective Date shareholders ".
 
watchlist Created with Sketch. Add UMC (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.