Decision near in Evans & Tate-Yarraman takeover
- Monday 26 February 2007
Yarraman has put in an improved offer, valuing Evans & Tate at AU$148.3m (€89.3m). This has been accepted conditionally by Evans & Tate.
The two companies must now follow due diligence procedures and there must be a merger implementation agreement by 20 March.
On 20 February the E&T board said they would look to 'verify the debt and equity commitments for Yarraman's proposal as well as Yarraman's forecasts.'
Yarraman's deal includes paying AU$97.3m (€58.6m) to Evans & Tate's bankers.
However, Yarraman’s latest results for the three months to 31 December 2006 show a loss of US$1,299.354 (€986.57) and total liabilities of US$8.96m (€6.8m).
In these latest results Yarraman has been obliged to raise ‘substantial concern about its ability to continue as a going concern’.
Evans & Tate retains the right to consider and accept an unsolicited and better offer.