The biggest problem I hav with what is currently going on is the obvious conflict of interest inherint in the board who for the majority part are the 'Consortium' deciding not to give details to shareholders of rival offers being made for the company. They are acknowledging the existence of another offer and are unwilling to give shareholders a chance to even view details of the offer let alone vote on it under the pretence that it has some 'uncertainties'.
For mine that is the best bet for having ASIC poke around under the hood in what is going on at KML.
The Independant report commissioned for the general meeting describes the deal as 'unfair' though concedes there are too many unknowns for it to be deemded unreasonable. The biggest problem is that without the exploration and analysis that should have been done on the tenements KML has rights to it is difficult to know the value of these assets in a wind-up. It is certainly worth considering though that shareholders have a very good chance of a better return from the company going into administration than from being effectively bought out by the consortium at a price well short of even 1 cent a share for up to 87% ownership of the comapny. Also noteworthy from the independant report is that the consortium are not paying any kind of premium for control of the company as should happen in a deal like this.
Many other concerns are raised by a read through the General Meeting notes posted out this week but after finding the consortium directors voted in again on Monday I'm starting to believe there's not much I/we can do to stop what is happening apart from asking ASIC and the ASX to monitor carefully what is happening in the hope that some accontability can be brought down on those that have created this situation and those that are seeking to benefit from it at the expense of ordinary shareholders.
KML Price at posting:
4.0¢ Sentiment: None Disclosure: Held
