Question
Uranium Mining Ltd (UML) is a small public listed company with its head office in South Australia. The directors of UML own 10% of UML's
Uranium Mining Ltd (UML) is a small public listed company with its head office in South Australia. The directors of UML own 10% of UML's shares, Capital Investments Ltd (CIL), an Adelaide-based company, owns 15% and various institutional and retail investors own the remaining 75%. CIL is interested in acquiring all the shares in UML and is prepared to offer cash and shares in CIL as consideration. They have approached the directors of UML who will support the takeover. But one of the major shareholders with 11% of the shares may not sell its shares. Advise CIL whether a scheme of arrangement or a takeover market bid would have a greater chance of success.
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