re: Ann: Bidder's Statement despatched to... I decided to read...

re: Ann: Bidder's Statement despatched to... I decided to read both the Bidder's and Target's statements and there was only one point that I wasn't previously aware of. That was the last paragraph on page 6 of the Bidder's Statement that states that:

"If Wah Nam Australia is successful in gaining a 80% or more interest in Brockman through acceptances of the Offer then, unless Brockman has more than the required spread of shareholders under the ASX listing rules, it intends to make an application to remove Brockman from the official list of the ASX".

The required spread of shareholders, as far as I can find from the ASX website, is as follows:

"The company must have at least 400 shareholders each having a parcel of shares with a value of at least $2,000, and at least 25% of the company’s shares must be held by parties unrelated to the company and its directors. If more than 75% of the company’s shares are held by related parties, the company must have 500 shareholders."
(refer page 13 in www.asx.com.au/documents/.../international_resources_listings.pdf).

IS MY INTERPRETATION CORRECT???

If so, and WNI gets more than 80%, there must be at least 500 other shareholders (i.e.: us) with shares to the value of at least $2,000 each, otherwise WNI can have BRM de-listed.

If there are only, say, 490 other shareholders left with an average 40,000 shares each (about 14% of BRM), this won't be enough.

2 more questions:

1. What will it mean for all of us if BRM is de-listed without WNI having achieved 90%???

2. What can we do about it???