United Minerals pulls rights issue at behest of BHP

United Minerals pulls rights issue at behest of BHP

Mining company United Minerals (ASX:UMC) has cancelled its proposed non-renounceable rights issue, to settle a condition of a takeover bid from BHP Billiton.

BHP has offered $1.30 per share cash for each UMC, in a deal which values UMC at around $204 million, but has not proceeded with the transaction as its conditions of purchase have not been met.

The company had held a rights issue of up to 15.5 million new options at a rate of one option for every ten shares held, but will return all subscription moneys received without interest as soon as possible.

United also pulled the plug on a proposed investment offer from Chinese venture China Railway Minerals – another condition of the BHP investment.

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