Archive for December 15th, 2008

source: Mmegi
STAFF WRITER

BSE-listed Aviva Corporation’s merger with Northern Energy Mining Inc. (NEMI) to create a new growth-oriented international coal and energy group has suffered a stillborn after errors were realised in the latter’s books.

In October, the two parties announced the execution of a Merger Implementation Agreement (MIA) under which they agreed to merge by way of a Scheme of Arrangement.

However, NEMI this week advised Aviva that errors in determining the partners’ historical cash calls in Peace River Coal Limited Partnership (PRC) had been made, hence their interest in the PRC had been affected.

“The effect of this error was to reduce NEMI’s PRC interest from an expected 16 to 17 percent to approximately 12 percent,” a statement posted on [continue reading]