Importance of Minority Shareholders:
- It just goes to show how important determined minority shareholders can be.
In the above example 10.3% has proven to be a very significant blocking stake.
- FMG were happy to purchase 19.9% of AGO with the intent of using this as a blocking stake of MinRes's takeover believing that another 5.1% of shares held by minority holders would also not allow any Scheme of Arrangements to be entered in to which requires a 75% holding.
- At the last FMS board meeting, changing the constitution of FMS which requires a 75% vote was also voted down.
- It just confirms what I already believe that OCJ is the kingmaker holding near 22% of shares on issue. OCJ's position becomes even more important when looking at his excerpt from the Bidders Statement from the opening post in this thread. This could be crucial regarding approving any commercial deal with BBIG.
(f) As indicated above, as a result of the Shareholder Protections, Redstone and its associates may also be excluded from voting on certain resolutions in general meeting, and Redstone's nominee directors may potentially be precluded from voting at Atlas Board meetings, to the extent of any conflict of interest or material personal interest. Further, in circumstances where a minority shareholder maintains a "blocking stake" or other substantial holding in Atlas which provides them with a significant proportion of the Atlas shares which are not held by Redstone, then that shareholder's ability to determine the outcome of any such resolutions put to Atlas Shareholders in general meeting may be disproportionate to its holding (for example, where that shareholder's holding in Atlas is such that they alone could determine whether a resolution is passed or not, in circumstances where Redstone and its associates are excluded from voting on that resolution)."
Takeover Panel:
I don't have an AFR login but Twiggy obviously knows the power of the Takeover Panel
(20min delay)