Just in case any CWX holders missed what
@Buttons50 has pointed out, I'll reiterate it.
Anyone who feels the compulsory acquisition is an
opportunistic corporate play by QGold to unfairly acquire the minority shares, is granted a power under Section 664(e) of the Corporations Act 2001, to lodge an
Objection to the compulsory acquisition.
In the event that a minimum of 10% of the outstanding minority shares duly lodge an objection, then the transaction cannot proceed without QGold first applying to the Court to have the compulsory acquisition approved.
Given that there are 200mil shares on issue and QGold owns approx 90%, the minority stake to which the notice applies equates to less than 20mil shares. 10% of that equates to not more than 2 million shares.
In other words, if holders of just 2 million CWX shares object to the compulsory acquisition then QGold must either inform all minority holders that the acquisition will not be proceeding, or alternatively apply to the Court and have a Court deem that the 11c consideration is fair, and then approve or deny the acquisition.
There are many arguments that an objecting shareholder could present to the Court to show that 11c is not a fair price. I would be surprised if, having failed to sneak the acquisition through because minorities failed to recognise that they have the power to object, that QGold would present this offer to the Court given that the consideration of 11c doesn't even fall within the quoted market price method fair value range of 13c - 17c.
Another requirement of section 664 is that:
The 90%holdermust bear the costs that apersonincurs on legalproceedingsin relation to the application unless theCourtis satisfied that thepersonacted improperly, vexatiously or otherwise unreasonably. The 90%holdermust bear their own costs.
A further interesting point is that the act allows for shares acquired after the acquisition is announced to also be entitled to object to the acquisition. I wouldn't be surprised that the recent on market buying at 11c was from a holder who wanted to ensure that the minimum of 2,000,000 shares of objections is reached.
Nonetheless, just in case it was QGold buying on market at 11c, I urge any CWX shareholders who see this acquisition as unfair, to lodge the objection form within the required time frame (by 21th April). The objection form can be lodged via email at: [email protected]
I hold 100,000 shares and will be lodging an objection. It will be interesting to see how many other shareholders on this forum intend to lodge an objection and see if the 10% objection threshold of approx 2,000,000 shares will be met from holders within this forum (please post your holding and intention below if you feel inclined).
Below are the two relevant section of the Corporations Act which confirm the information I have included in this post.
(20min delay)