xtract energy use to hold 18.6% of AVA shares, on the 14/08/07 they then transferred their entire holdings to WAS (now holding 17.95% AVA) in exchange they get a big chunk of WAS shares which increased their holding in WAS from 19.48% to 34.52%.
Under chapter 6 of the Corporation Act it states
"Chapter 6 regulates acquisitions of corporate control. It uses a shareholding of 20% as the threshold of regulation. However, the ASC has noted an inconsistency in applying this threshold where a person holds exactly 20% of a company's shares. Paragraph 615(1)(a) forbids a person from becoming entitled to `more than' a 20% shareholding in a company unless the takeover rules in Chapter 6 have been followed. However, the effect of s 33 is that a person who becomes entitled to exactly 20% of the shares in an `upstream' company will breach s 615 where the upstream company is entitled to more than 20% of the shares in any `downstream' company unless the Chapter 6 takeover rules have been followed"
So you see lets say hypothetically xtract energy decides to takeover WAS then technically what they sold out of AVA they will get it all back through acquiring WAS.
WAS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
