I have held a small holding since the Kimberly days so have been through the ups and downs. I am going to stay around to help this to be voted down. In the last few years the company has made no effort in getting into the brokers/funds here and have basically given up with the Australian market.
They say they have a better chance of raising capital in Europe...most good Aussie companies have plenty of European instos on their registers. The ASX along with TSX are the best resources markets in the world. There are no guarantees of a new listing in Europe and in any case London has no liquidity and France has no junior market. By staying private the pool of funds in Europe (and anywhere) is miniscule for unlisted companies. So why bother?
I will tell you why. Most of the Aussie holders will not accept this rubbish as they want to be able to buy and sell their shares when they want. The major shareholders do accept the offer and end up with a greater % interest in the UK company compared to their % interest now. In addition, as there are more lax obligations in the UK compared to here, those major shareholders end up with more power. The Aussie holders become irrelevant, the listing could be deleted. The cash in EPG goes to the UK company.
The biggest shareholder is a small fund called Maoming which is registered in Panama! operates in China! and it is controlled and managed by the EPG Chairman!. They control this weak board and they krafted this apalling document. As far as I know, the Chairman has been to Austarlia once over the years, has never surfaced for an AGM and the local brokers and funds ignore him. So there is no love so let's make the Aussie shareholders irrelevant.
This is not in the best interests of all shareholders, just a few (or just one) and the rest of the board has not got a clue.
We need a competent board and mangement that operates in the best interest of all shareholders. Isn't that thier obligation?
B
EPG Price at posting:
14.0¢ Sentiment: None Disclosure: Held
