It appears that the Takeovers Panel is focused mainly on ensuring that TIO does not increase their ownership as the result of the delist proposal and the TIO undertakings cover those issues. Obviously it does not address many other concerns held by minority holders, not the least being the lack of transparency for an unlisted Company and the almost total control TIO NZ will have over any FMS trading (although there is an indication they may have to come up with some sort of alternative market proposal).
FMS can now re apply to ASX for delist subject to the TIO undertakings which appear to satisfy the Takeovers panel. This is obviously a major concern as ASX were adamant they can approve on an ordinary resolution according to their guidelines.
It appears minority holders will have to convince ASX this move should entail a Special resolution or a TIO vote exclusion and perhaps ASX may take a closer look before a cursory approval this time!!
Certainly calls for continued approaches to ASX and ASIC pointing out a delist proposal is in no way in the best interests of the majority of shareholders.
FMS Price at posting:
5.1¢ Sentiment: None Disclosure: Held
