Shareholders back OMH’s protection plan -------------------------------------------------------------------------------- Friday, 16 January 2009 Kate Haycock
OM Holdings shareholders have voted in favour of the company’s takeover protection provisions, thwarting efforts by Ukrainian-owned Consolidated Minerals to stop the implementation of the plan.
The Singapore-based manganese miner said yesterday 85% of votes cast at its shareholder meeting were in favour of the provisions.
More than 80% of OMH’s register voted, and only 15% of the votes cast during the poll were against the provision.
The majority of the votes against the plan came from Stratford Sun, a company owned by another Australian manganese miner ConsMin.
ConsMin – itself owned by Ukrainian interests – has claimed OMH’s plans to adopt a “takeover protection” scheme are not in the best interests of the company’s shareholders.
OMH is listed in Australia and based in Singapore, but incorporated in Bermuda, meaning it is not subject to Australian takeover law.
Late last year ConsMin bought into OMH, snapping up around 12% of OMH’s shares in Australia.
On December 23, four weeks after ConsMin’s buy-in was revealed, OMH announced it would be introducing changes to its by-laws to include takeover provisions “broadly based” on Australian takeover law.
OMH said the changes would provide a regulated environment for any changes of control, allow shareholders time and opportunity for offers to be evaluated and competing offers to emerge, and would ensure all shareholders could share in any control premium payable by a potential bidder for the company.
However, ConsMin has claimed the changes actually excluded shareholder protection and were potentially destructive to shareholder value.
ConsMin has said for now it has no intentions to launch a takeover bid for OMH.
Shares in OMH were last trading 3c higher at $1.08 this morning.
OMH Price at posting:
$1.06 Sentiment: None Disclosure: Held
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