The announcement was on back of Mawarid acquiring more than 50% stake in UCL after the latter’s major stakeholder Twynam Agricultural Group sold its 28.59% stakes on-market.
Further, the company said that Mawarid’s offer tenders certainty to the stakeholders at the time when the company’s proportion of the equity required to fund the Sandpiper Marine phosphate project is likely to be several times its own market capitalization.
Also, Mawarid is said to have control of the Sandpiper project and UCL has estimated capital expenditure for the project at nearly $323m.
It is difficult to raise capital in equity market, furthermore, for small and medium sized companies.
The company has also advised its shareholders that the offer expires on 7 June 2013.
