BHP step closer in big take-over

Press, 3 February 1984, Page 10

BHP step closer in big take-over

INZra rsnsoane BHP, Ltd, moved a step closer to succeeding in its SUS 2.4 billion take-over of the American mining giant, Utah International, Inc., in Brisbane. Shareholders of Umal Consolidated, Ltd, the Australian minority equity holder in Utah International’s subsidiary, the Utah Development Company, voted to ratify a complex takeover deal with BHP.

The move was part of a complex scheme to provide cash to finance BHP’s takeover agreement with Utah’s international parent, the General Electric Company. Under the agreement ratified, Umal shareholders will receive 310 sAustl units in the Queensland Coal Trust, to be floated later this month by BHP Mineral Holdings, Ltd, for each 100 shares. The offer is conditional on

BHP’s acquiring 75 per cent of Umal. A premium of an extra 10 units will be paid if BHP acquires more than 90 per cent.

There will also be a public cash issue in the trust of SIOOM. The BHP-owned Umal will sell its 10.8 per cent holding in Utah Development to Utah International for $217 million. After the meeting, Umal directors were confident the overwhelming vote for ratification (57,378,754 shares to 14,093) would be followed by quick acceptance of BHP’s offer in line with the timetable to complete the deal by April 5. According to a circular to Umal shareholders, the end result of the deal will be a revamped Central Queensland Coal Association with BHP replacing Utah as the largest shareholder.