UniFiber

UniFiber: lifts halt at 8.30am this morning. Unifiber has terminated the proposed reverse takeover (RTO) acquisition of 97% of PT Golden Energy Mines (GEMS) for $2.24b, to be satisfied by the issue of new Unifiber shares at $0.035 each. The agreement lapsed as the financial and operational state of affairs of the co has materially altered, primarily due to losses attributable to subsidiary, Poh Lian Construction in judicial mgt. In place, the group has implemented a new pact, announcing a new non-legally binding heads of agreement with vendor PT Dian Swastatika Sentosa (DSS) to acquire its 67% stake in GEMS, in exchange for 94.14b new UniFiber shares (93.8% of enlarged share base) at $0.019 each. The long stop date will be no later than 31 Dec 2013. The NAV of GEMS is approx US$296.3m and NTA is US$199.4m. Effectively, this means - Unifiber is issuing the new shares at a 46% discount compared to the initial agreement, and - The implied price of GEMS (100% stake) has increased 16% to $2.67b. This is a substantial haircut that Unifiber is taking in order to proceed with the RTO.